Laserfiche WebLink
i f <br />r' � �. <br />b. The Loan shall be secured by an irrevocable and second lien (but not necessarily <br />an exclusive second lien), on a parity with Outstanding and subsequently issued <br />Second-Lien Obligations but expressly subordinate and junior to Outstanding and <br />subsequently issued First-Lien Obligations, as defined in Article 5 of the General <br />Ordinance (Appendix 3) and Article 2 of Ordinance No. 2004-10 (attached hereto <br />as Appendix 4). <br />c. Debt Service Reserve Account. There is hereby established the 2007 CWCB <br />Debt Service Reserve Account, into which shall be deposited annually for a <br />period of ten years an amount equal to one-tenth of the annual Debt Service <br />Requirement of the Loan from Net Pledged Revenues after payment of the Debt <br />Service Requirements of the Loan, and as further described in Section 5 of the <br />2007 CWCB Series Ordinance. The 2007 CWCB Reserve Account shall be held <br />and maintained for the purpose of defraying Debt Service Requirements of the <br />Loan to the extent the Net Pledged Revenues are not sufficient for such purpose, <br />and if so applied shall be replenished from legally available funds within 90 days <br />of withdrawal of the funds. <br />d. Additional Obligations. Additional Obligations payable from the Net Pledged <br />Revenues shalf be issued only upon compliance with Section 5.02 of the General <br />Ordinance and Section 4.01 of the 2004 Series Ordinance. <br />e. Annual Statement of Debt Coverage. Each year during the term of this <br />Contract, the Borrower shall submit to the CWCB an annual audit report and a <br />certificate of all Utility Enterprise debt service coverage from a certified public <br />accountant. <br />9. Compliance with Covenants. The Borrower shall, throughout the term of the Loan, <br />comply with all of the covenants on its part contained in the General Ordinance, the <br />CWCB 2007 Series Ordinance and this Agreement. <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 />11. Warranties. <br />a. BORROWER'S Authority To Contract. The BORROWER warrants that it has full <br />power and authority to accept the Loan and enter into this Contract. The execution <br />and delivery of this Contract and the perFormance and observation of its terms, <br />conditions and obligations have been duly authorized by all necessary actions of <br />the BORROWER. The BORROWER's authorizing ordinances are attached as <br />Appendices 3-5 and incorporated herein. <br />b. The BORROwER warrants that, by acceptance of the loan under this Contract and <br />by its representations herein, the BoRROwER 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 />Loan Contract C150243 <br />Page 5 of 15 <br />