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<br />e
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<br />revenues are sufficient to pay its annual operating and maintenance expenses,
<br />annual debt service on all outstanding indebtedness having a lien on the
<br />pledged revenues, including this loan, the annual debt service on the proposed
<br />indebtedness to be issued, and all required deposits to any reserve funds
<br />required by this contract or by the lender(s) of any indebtedness having a lien on
<br />the pledged revenues. The analysis of revenues shall be based on the
<br />BORROWER'S current rate structure or the rate structure most recently adopted,
<br />No more than 10% of total revenues may originate from tap and/or connection
<br />fees.
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<br />The BORROWER acknowledges and understands that any request for approval of the
<br />issuance of additional debt must be reviewed and approved by the CWCB Executive
<br />Director prior to the issuance of any additional debt.
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<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.
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<br />7. Collateral. The collateral for this loan is described in Project Summary, Section 3. The
<br />BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber,
<br />or otherwise dispose of the collateral for this loan, including the Pledged Revenues, so
<br />long as any of the principal, accrued interest, and late charges, if any, on this loan
<br />remain unpaid, without the prior written concurrence of the CWCB. In the event of any
<br />such sale, transfer or encumbrance without the CWCB's written concurrence, the
<br />cwes may at any time thereafter declare all outstanding principal, interest, and late
<br />charges, if any, on this loan immediately due and payable.
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<br />8. 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 collateral and the Pledged Property pledged to repay this loan.
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<br />9. Warranties.
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<br />a. The BORROWER warrants that, by acceptance of the loan money pursuant to the
<br />terms of this contract and by the BORROWER'S representation herein, the BORROWER
<br />shall be estopped from asserting for any reason that it is not authorized or obligated
<br />to repay the loan money to the CWCB as required by this contract.
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<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 solicit
<br />or secure this contract and has not paid or agreed to pay any person, company,
<br />corporation, individual, or firm, other than a bona fide employee, any fee,
<br />commission, percentage, gift, or other consideration contingent upon or resulting
<br />from the award or the making of this contract.
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<br />c. The BORROWER warrants that the property identified in the Collateral Provisions of
<br />this contract is not encumbered by any other deeds of trust to or liens of any party
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<br />Loan Contract
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