Laserfiche WebLink
of this CONTRACT to establish, levy and collect rates, charges and fees as <br /> described in APPENDIX 3, in amounts sufficient to pay this loan as required by <br /> the terms of this CONTRACT and the PROMISSORY NOTE, to cover all <br /> expenditures for operation and maintenance and emergency repair services, <br /> and to maintain adequate debt service reserves, including obtaining voter <br /> approval, if necessary, of increases in the BORROWER'S rate schedule or taxes, <br /> if applicable. <br /> d. Debt Service Reserve Account or Fund. To establish and maintain the debt <br /> service reserve account or fund, the BORROWER shall deposit an amount equal to <br /> one-tenth of an annual payment into its debt service reserve account or fund on <br /> the due date of its first annual loan payment and annually thereafter for the first <br /> ten years of repayment of this loan. In the event that the BORROWER applies <br /> funds from this account to repayment of the loan, the BORROWER shall <br /> replenish the account within ninety (90) days of withdrawal of the funds. The <br /> debt service reserve account or fund requirement is in effect until the loan is <br /> paid in full. <br /> e. Additional Debts or Bonds. The BORROWER shall not issue any <br /> indebtedness payable from the PLEDGED REVENUES and having a lien thereon <br /> which is superior to the lien of this loan. The BORROWER may issue parity debt <br /> only with the prior written approval of the CWCB, provided that: <br /> i. The BORROWER is currently and at the time of the issuance of the parity debt in <br /> substantial compliance with all of the obligations of this CONTRACT, including, <br /> but not limited to, being current on the annual payments due under this <br /> 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 <br /> of the issuance of additional debt must be reviewed and approved by the <br /> CWCB prior to the issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this <br /> Loan Contract C15041 OD <br /> Page 4 of 13 <br />