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constitution, statute, rule of law, enforcement of penalty, or otherwise. By the acceptance of the <br /> Promissory Notes and as a part of the consideration of its sale or purchase, CWCB specifically <br /> waives any such recourse. <br /> Section 9. Disposition and Investment of Proceeds of the Loan Contracts. The <br /> proceeds of the Loan Contracts shall be applied only to pay the costs and expenses of acquiring, <br /> constructing and equipping the Project, including costs related thereto and reimbursement to the <br /> District for capital expenditures heretofore incurred and paid from District funds in anticipation of <br /> the incurrence of long-term financing therefor, and all other costs and expenses incident thereto, <br /> including without limitation the costs of obtaining the Loan Contracts. The CWCB shall not be <br /> responsible for the application or disposal by the District or any of its officers of the funds derived <br /> from the Loan Contracts. <br /> Section 10. Estimated Life of Improvements. It is hereby determined that the <br /> estimated life of the Project to be financed with the proceeds of the Loan Contracts is not less than <br /> the final maturity of the respective Loan. <br /> Section 11. Issuance of Additional Debts or Bonds. The District will not issue any <br /> indebtedness payable from the Pledged Revenue and having a lien thereon which is superior to the <br /> lien created by the Financing Documents. The District will issue parity debt only with the prior <br /> written approval of CWCB, provided that: <br /> (a) the District is at the time approval is requested from CWCB and at the time of <br /> the issuance of the parity debt in substantial compliance with all of the obligations of the <br /> Loan Contracts, including, but not limited to, being current on the annual payments due <br /> under the Loan Contracts and in the accumulation of all amounts then required to be <br /> accumulated in the District's debt service reserve account or fund; and <br /> (b) the District provides to the CWCB a Parity Certificate from an independent <br /> certified public accountant certifying that,based on an analysis of the District's revenues,for <br /> 12 consecutive months out of the 18 months immediately preceding the date of issuance of <br /> such parity debt, the District's revenues are sufficient to pay its annual Operation and <br /> Maintenance Expenses,annual debt service on all outstanding indebtedness having a lien on <br /> the Pledged Revenue,including the Loan Contracts,the annual debt service on the proposed <br /> 6 <br />