CT2016-2516 Contract - Laserfiche WebLink

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"Subordinate Obligations" means loans, bonds, notes, debentures, or other multiple fiscal year financial obligations having a lien upon the Pledged Revenues or any part thereof junior and subordinate to the lien thereon of the Promissory Note. "Supplemental Act" means Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended. "System" means all of the District's water and sewer facilities and properties,now owned or hereafter acquired, whether situated within or without the District boundaries, including all present or future improvements, extensions, enlargements, betterments, replacements or additions thereof or thereto. Section 2. Approval of Loan Contract and Authorization of Promissory Note. Pursuant to and in accordance with the Enabling Laws and the Ballot Authorization, there is hereby authorized and approved the execution of the Loan Contract. There shall be issued by the District the Promissory Note in the aggregate principal amount not to exceed $332,795, for the purpose of paying the Project Costs and other costs in connection with the Promissory Note. All covenants, statements, representations and agreements contained in the Loan Contract and the Promissory Note are hereby approved and adopted as the covenants, statements, representations and agreements of the District. The accomplishment of the Project is hereby authorized, approved and ordered and it is hereby determined that the Promissory Note matures at such time not exceeding theestimated life of the Project. Section 3. Pledge of Revenues and Rate Covenant. The Promissory Note is a special revenue obligation of the District, payable from the Pledged Revenues and moneys on deposit in the Reserve Account. All of the Promissory Note, together with the interest thereon, shall be payable solely from and to the extent of the Pledged Revenues and moneys on deposit in the Reserve Account, and the Pledged Revenues are hereby pledged to the payment of the Promissory Note. The Promissory Note shall constitute a first lien upon the Pledged Revenues, but not necessarily an exclusive first lien. The Board shall establish, levy and collect, rates charges and fees in an amount sufficient to pay the loan as required under provision A(8)(c) of the Loan Contract and the Promissory Note. Nothing herein shall be construed to require the District to levy an ad valorem property tax for payment of the Promissory Note in excess of the mill levy otherwise permitted by law and otherwise determined to be levied by the Board on an annual basis. Section 4. Form of Promissory Note. The Promissory Note shall be in substantially the form set forth in Appendix 3 to the Loan Contract with such changes thereto, not inconsistent herewith,as may be necessary or desirable and approved by the officials of the District executing the same (whose manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). The interest rate authorized for the Promissory Note is 2.75% per annum (and the maximum net effective interest rate shall not exceed 5% per annum pursuant to the terms of the Ballot Authorization), exclusive of any late charges which may be imposed pursuant to the terms of the Loan Contract for any late payments. {00488776.DOC /2} 4 4833-8387-9213.1