C150122 PIF Documents

• Contract/PO #: C150122
• Contractor Name: Central Weld County Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

•
e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness
payable from the pledged revenues and having a lien thereon which is superior to
the lien of this loan. The BORROWER may issue parity debt only with the prior
written approval of the CWCB, provided that:
i. The BORROWER is currently and at the time of the issuance of the parity debt
in substantial compliance with all of the obligations of this contract, including,
but not limited to, being current on the annual payments due under this
contract and in the accumulation of all amounts then required to be
accumulated in the BORROWER'S debt service reserve fund;
ii. The BORROWER provides to the CWCB a Parity Certificate from an
independent certified public accountant certifying that, based on an analysis of
the BORROWER'S revenues, for 12 consecutive months out of the 18 months
immediately preceding the date of issuance of such parity debt, the
BORROWER'S revenues are sufficient to pay its annual operating and
maintenance expenses, annual debt service on all outstanding indebtedness
having a lien on the pledged revenues, including this loan, the annual debt
service on the proposed indebtedness to be issued, and all required deposits
to any reserve funds required by this contract or by the lender(s) of any
indebtedness having a lien on the pledged revenues. The analysis of
revenues shall be based on the BORROWER'S current rate structure or the rate
structure most recently adopted. No more than 10% of total revenues may
originate from tap and/or connection fees.
The BORROWER acknowledges and understands that any request for approval of
the issuance of additional debt must be reviewed and approved by the CWCB
Director prior to the issuance of any additional debt.
f. Annual Statement of Debt Coverage. Each year during the term of this contract,
the BORROWER shall submit to the CWCB an annual audit report and a certificate of
debt service coverage from a Certified Public Accountant.
9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell,
convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of
the Pledged Revenues other than for payment of existing obligations of the
BORROWER described in Section 5 of the Project Summary, so long as any of the
principal, accrued interest, and late charges, if any, on this loan remain unpaid,
without the prior written concurrence of the CWCB.
10. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
principal, all accrued interest, and late charges, if any, as s ' iedi the Promissory
Note, the CWCB agrees to release and terminate any ah*a ' B'S right, title,
and interest in and to the Pledged Revenues. .
AI
11. Warranties. •
•
p
a. The BORROWER warrants that, by acceptance of the Is 4' y -ct agd by
its representations herein, the BORROWER shall be esto••ed; -' ' g for any
reason that it is not authorized or obligated to repay the loan to pB as
required by this contract.
Page 4of11
•