Laserfiche WebLink
annual payment into its debt service reserve fund on the due date of its first annual <br />loan payment and annually thereafter for the first ten years of repayment of this <br />loan. In the event that the BORROWER applies funds from this account to <br />repayment of the loan, the BORROWER shall replenish the account within ninety <br />(90) days of withdrawal of the funds. <br />e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness <br />payable from the PLEDGED REVENUES and having a lien thereon which is superior <br />to the lien of this loan. The BORROWER may issue parity debt only with the prior <br />written approval of the CWCB, provided that: <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, <br />including, but not limited to, being current on the annual payments due under <br />this CONTRACT and in the accumulation of all amounts then required to be <br />accumulated in the BORROWER's debt service reserve fund; <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 />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 />f. 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 debt service coverage from a Certified Public Accountant. <br />9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey, <br />assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the <br />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 />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 />Loan Contract C150346 <br />Page 4 of 12 <br />