CT2015-070 Contract - Laserfiche WebLink

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(b) Application of Net Revenues. The Authority shall credit to the General Fund all Gross Revenue immediately upon receipt. The Authority shall pay from the General Fund all Operation and Maintenance Expenses as they become due and payable. After such payment or the allocation of Gross Revenue to such payment, the Authority shall apply the Net Revenue to payment of the Promissory Notes and replenishment of the Reserve Account in accordance with the Loan Contracts. (c) Promissory Note Does Not Constitute a Debt of Members. Each Promissory Note, together with the interest thereon, shall be payable only out of: (i) the Net Revenue; or (ii) if necessary, the Reserve Account. The CWCB may not look to the funds, accounts or assets of any Member for the payment of the principal of and interest on the Promissory Notes, and the Loan Contracts and the Promissory Notes shall not constitute a debt or an indebtedness of any Member within the meaning of any constitutional or statutory provision or limitation; nor shall they be considered or held to be general obligations of any Member. Section 6. Additional Obligations. No bonds, notes, interim securities or other obligations shall be issued payable from the Net Revenue and having a lien thereon which is superior to the lien of the Promissory Notes. The Authority may issue Future Parity Obligations only upon compliance with the requirements of provision A(8)(e) of the Loan Contracts. So long as no Event of Default shall have occurred and be continuing, nothing herein shall prevent the Authority from issuing obligations payable from the Net Revenue on a basis subordinate to the Promissory Notes. Section 7. Additional Covenants and Agreements. (a) Maintenance of Rates and Coverage. The Authority hereby covenants that it will establish, maintain, enforce and collect rates, fees and charges for services furnished by or the use of the Project Improvements as required in provision A(8)(c) of the Loan Contracts. In the event that the Gross Revenue at any time is not sufficient to make the payments required by said provision, the Authority covenants to promptly increase such rates, fees and charges to an extent which will ensure compliance with said covenant. (b) Enterprise Status. The Authority operates, and covenants to continue to operate, as an "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution; provided, however, after calendar year 2014 the Authority may disqualify itself as an "enterprise" in any year in which said disqualification does not materially, adversely affect the enforceability of the covenants made pursuant to this Resolution. (c) Findings of the Board. The Board, having been fully informed of and having considered all the pertinent facts and circumstances, hereby finds, determines, declares and covenants with the CWCB that: (i) The Authority has been duly established and is operating during the current calendar year as an "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution; 8 4831-0427-7019.3