C150036 Paid in Full Contract

• Contract/PO #: C150036
• Contractor Name: Weld County Tri-Area Sanitation District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

• •
a. Keep pledged revenues separate. The BORROWER shall set aside and keep the
pledged revenues in an account separate from other BORROWER revenues, and warrants
that these revenues will not be used for any other purpose.
b. Security interest in pledged revenues. To provide a security interest to the CWCB
in the pledged revenues so that the CWCB shall have priority over all other competing
claims for said revenues, the BORROWER has duly executed a Security Agreement,
attached hereto as Appendix 4 and incorporated h rein.
c. Rate Covenant. Pursuant to its statutory auth d rmitted by law, the
BORROWER shall take all necessary actions consi i ring the term of this
contract to establish, levy and collect wast and storm ainage rates, charges
and fees in amounts sufficient to pay this s ,•k • , this contract and the
promissory note, to cover all expenditure f • tr. ,n• maintenance and
emergency repair services, and to maintain adequate de: - ■ =.•erves, including
obtaining voter approval, if necessary, of increases in the BORROWER'S revenues.
d. Debt Service Reserve Account. To establish and maintain the debt service reserve
account, the BORROWER shall deposit an amount equal to one-tenth of an annual
payment into its debt service reserve fund on the due date of its first annual loan
payment and annually thereafter for the first ten years of this loan. In the event that the
BORROWER applies funds from this account to repayment of the loan, the BORROWER
shall replenish the account within ninety (90) days of withdrawal of the funds.
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
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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 Executive
Page 3 of 11 Loan Contract