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Heavener v020107 will be required to pay .428 percent of the cost of joint-use RR&R of Project features. Payment of these costs shall be made either incrementally during construction or in lump sum (including interest during construction) upon completion of construction c. Annual Operation and Maintenance (O&M) Expense. The Authority will be required to pay .428 percent of the annual experienced joint-use O&M expense of the Project. Payments for O&M expense are due and payable in advance on the date for payment of the first cost of storage as set forth in Article 5a(2) and shall be based on O&M expense for the Project in the Government fiscal year most recently ended. The amount of each annual payment will be the actual experienced O&M expense (allocated joint-use) for the preceding fiscal year or an estimate thereof when actual expense information is not available. d. Prepayment. The Authority shall have the right at any time to prepay the indebtedness under this Article in whole or in part, with accrued interest thereon to the date of such prepayment. e. Delinquent Payments. If the Authority shall fail to make any of the aforesaid payments when due, then after a 15-day grace period the overdue payments shall bear interest compounded annually until paid. The interest rate to be used for overdue payments due under the provisions of Articles 5a, 5b, and 5c above shall be that determined by the Department of Treasury's Treasury Financial Manual (1 TFM 6-8000, "Cash Management"). The amount charged on payments overdue for a period of less than one year shall be figured on a monthly basis. A month's interest will be charged for any portion of each month that the payment is delinquent. This provision shall not be construed as giving the Authority a choice of either making payments when due or paying interest, nor shall it be construed as waiving any other rights of the Government, at law or in equity, which might result from any default by the Authority. ARTICLE 6 - Duration of Agreement. This agreement shall become effective when signed by the Secretary of the Army or his duly authorized representative and shall continue in full force and effect for the life of the Project. ARTICLE 7 - Permanent Rights to Storage. Upon completion of payments by the Authority, as provided in Article 5a herein, the Authority shall have a permanent right, under the provisions of the Act of 16 October 1963 (Public Law 88-140, 43 U.S.C. 390e), to the use of the water supply storage space in the Project as provided in Article 1, subject to the following: a. The Authority shall continue payment of annual operation and maintenance costs allocated to water supply. b. The Authority shall bear the costs allocated to water supply of any necessary reconstruction, rehabilitation, or replacement of Project features which may be required to continue satisfactory operation of the Project. The District Engineer will establish such costs and the repayment arrangements shall be in writing in accordance with the terms and conditions set forth in Article 5b for reconstruction, rehabilitation, and replacement costs, and be made a part of this agreement. c. Upon completion of payments by the Authority as provided in Article 5a, the District Engineer shall redetermine the storage space for municipal and industrial water supply in accordance with the provisions of Article 1e. Such redetermination of reservoir storage capacity may be further adjusted 4