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<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
<br />rate structure most recently adopted. No more than 10% of total revenues
<br />may 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 CWCS an annual audit report and a certificate
<br />of debt service coverage from a Certified Public Accountant.
<br />
<br />8. Collateral During Loan Repayment. The BORROWER shall not sell, convey, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged
<br />Revenues, so long as any of the principal, accrued interest, and late charges, if any,
<br />on this loan remain unpaid, without the prior written concurrence of the CWCS. In
<br />the event of any such sale, transfer or encumbrance without the CWCS's written
<br />concurrence, the CWCS may at any time thereafter declare all outstanding principal,
<br />interest, and late charges, if any, on this loan immediately due and payable.
<br />
<br />9. Release After Loan Is Repaid. Upon complete repayment to the CWCS of th'e entire
<br />principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br />Note, the CWCS agrees to release and terminate any and all of the CWGB's right,
<br />title, and interest in and to the revenues pledged to repay this loan.
<br />
<br />10. Warranties.
<br />
<br />a. The BORROWER warrants that, by acceptance of the loan under this contract and
<br />by its representations herein, the SORROWER shall be estopped from asserting for
<br />any 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 />company, corporation, individual, or firm, other than a bona fide employee, any
<br />fee, commission, percentage, gift, or other consideration contingent upon or
<br />resulting from the award or the making of this contract.
<br />
<br />c. The BORROWER warrants that the Pledged Revenues and collateral for this loan
<br />are not encumbered by any other deeds of trust or liens of any party other than
<br />the CWeB or in any other manner, except for any pre-existing Iien(s) identified in
<br />Section 5 (Schedule of Existing Debt) of the Project Summary, which sets forth
<br />the position of the lien created by this contract in relation to any pre-existing
<br />Iien(s). Documentation establishing the relative priorities of said liens, if
<br />necessary, is attached to the Project Summary and incorporated herein.
<br />
<br />11. Remedies For Default. Upon default in the payments to be made by the BORROWER
<br />under this contract, or default in the performance of any covenant or agreement
<br />
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