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<br />written approval of the CWCB, provided that: <br /> <br />i. The BORROWER is currently and at the time of the issuance of the parity debt <br />in substantial compliance with all of the obligations of this contract. including, <br />but not limited to, being current on the annual payments due under this <br />contract and in the accumulation of all amounts then required to be <br />accumulated in the BORROWER'S debt service reserve fund; <br /> <br />ii. The BORROWER provides to the CWCB a Parity Certificate from an <br />independent certified public accountant certifying that, based on an analysis of <br />the BORROWER'S revenues. for 12 consecutive months out of the 18 months <br />immediately preceding the date of issuance of such parity debt. the <br />BORROWER'S revenues are sufficient to pay its annual operating and <br />maintenance expenses, annual debt service on all outstanding indebtedness <br />. having a lien on the pledged revenues, including this loan. the annual debt <br />service on the proposed indebtedness to be issued. and all required deposits <br />to any reserve funds required by this contract or by the lender(s) of any <br />indebtedness having a lien on the pledged revenues. The analysis of <br />revenues shall be based on the BORROWER'S current rate structure or the rate <br />structure most recently adopted. No more than 10% of total revenues may <br />originate from tap and/or connection fees. <br /> <br />The BORROWER acknowledges and understands that any request for approval of <br />the issuance of additional debt must be reviewed and approved by the CWCB <br />Director prior to the issuance of any additional debt. <br /> <br />f. Annual Statement of Debt Coverage. Each year during the term of this contract. <br />the BORROWER shall submit to the CWCB an annual audit report and a certificate of <br />debt service coverage from a Certified Public Accountant. <br /> <br />9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell. <br />convey, assign, grant, transfer, mortgage. pledge, encumber. or otherwise dispose of <br />the Pledged Revenues, so long as any of the principal, accrued interest. and late <br />charges. if any, on this loan remain unpaid, without the prior written concurrence of <br />the CWCB. <br /> <br />10. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire <br />principal. all accrued interest. and late charges. if any, as specified in the Promissory <br />Note. the CWCB agrees to release and terminate any and all of the CWCB's right. title, <br />and interest in and to the Pledged Revenues. <br /> <br />11. Warranties. <br /> <br />a. The BORROWER warrants that, by acceptance of the loan under this contract and by <br />its representations herein. the BORROWER shall be estopped from asserting for any <br />reason that it is not authorized or obligated to repay the loan to the CWCB as <br />required by this contract. <br /> <br />b. The BORROWER warrants that it has not employed or retained any company or <br />person, other than a bona fide employee working solely for the BORROWER, to <br />solicit or secure this contract and has not paid or agreed to pay any person, <br /> <br />Page 4 of 10 <br /> <br />