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4. Interest Prior to Project Completion. As the loan funds are disbursed by the <br /> CWCB to the BORROWER, interest shall accrue at the rate set by the CWCB for this <br /> loan. The CWCB shall calculate the amount of the interest that accrued prior to <br /> PROJECT'S substantial completion (as determined by the CWCB) and notify <br /> BORROWER of such amount. The BORROWER shall repay that amount to the CWCB <br /> either within ten (10) days from the date of notification from the CWCB, or, at the <br /> CWCB's discretion, said interest shall be deducted from the final disbursement of <br /> loan funds that the CWCB makes to the BORROWER. <br /> 5. Return of Unused Loan Funds. Any loan funds disbursed but not expended for <br /> the PROJECT in accordance with the terms of this CONTRACT shall be remitted to the <br /> CWCB within 30 calendar days from notification from the CWCB of either (1) <br /> completion of the PROJECT or (2) determination by the CWCB that the PROJECT will <br /> not be completed. <br /> 6. Borrower's Authority to Contract. The BORROWER warrants that it has full power <br /> and authority to enter into this CONTRACT. The execution and delivery of this <br /> CONTRACT and the performance and observation of its terms, conditions and <br /> obligations have been duly authorized by all necessary actions of the BORROWER. <br /> The BORROWER'S AUTHORIZING RESOLUTION AND ORDINANCE is attached as APPENDIX <br /> 5 and incorporated herein. <br /> 7. Bond Counsel's Opinion Letter. Prior to the execution of this CONTRACT by the <br /> CWCB, the BORROWER shall submit to the CWCB a letter from its bond counsel <br /> stating that it is the attorney's opinion that <br /> a. the CONTRACT has been duly executed by officers of the BORROWER who are duly <br /> elected or appointed and are authorized to execute the CONTRACT and to bind the <br /> BORROWER; and <br /> b. the resolutions or ordinances of the BORROWER authorizing the execution and <br /> delivery of the CONTRACT were duly adopted by the governing bodies of the <br /> BORROWER; and <br /> c. there are no provisions in the Colorado Constitution or any other state or local law <br /> that prevent this CONTRACT from binding the BORROWER; and <br /> d. the CONTRACT will be valid and binding against the BORROWER if entered into by the <br /> CWCB; and <br /> e. the CWCB's lien on the revenues pledged to repay this loan has parity status in <br /> relation to the existing parity debt. <br /> f. Based upon the parity certificate, the Water Activity Enterprise revenues, as <br /> reflected in the Water Enterprise Fund (which funds accounts for the financial <br /> activities of the Water Activity Enterprise) are sufficient to enable the City to <br /> execute the Promissory Note under the Loan Agreement. <br /> 8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for <br /> purposes of repayment of this loan, revenues levied for that purpose as authorized <br /> in APPENDIX 3 and any other funds legally available to the BORROWER, in an amount <br /> Page 3 of 12 <br />