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funds from this account to repayment of the loan, the BORROWER shall replenish the account within <br /> ninety (9o) days of withdrawal of the funds. The debt service reserve account or fund requirement is <br /> in effect until the loan is paid in full. <br /> e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness payable from the <br /> PLEDGED REVENUES and having a lien thereon which is superior to the lien of this loan. The <br /> BORROWER may issue parity debt only with the prior written approval of the CWCB, provided that: <br /> i. The BORROWER is currently and at the time of the issuance of the parity debt in <br /> substantial compliance with all of the obligations of this CONTRACT, including, but not <br /> limited to, being current on the annual payments due under this CONTRACT and in the <br /> accumulation of all amounts then required to be accumulated in the BORROWER'S debt <br /> service reserve fund; <br /> ii. The BORROWER provides to the CWCB a Parity Certificate from an independent certified <br /> public accountant certifying that, based on an analysis of the BORROWER'S revenues, for 12 <br /> consecutive months out of the i8 months immediately preceding the date of issuance of such <br /> parity debt, the BORROWER'S revenues are sufficient to pay its annual operating and <br /> maintenance expenses, annual debt service on all outstanding indebtedness having a lien on <br /> the pledged revenues, including this loan, the annual debt service on the proposed <br /> indebtedness to be issued, and all required deposits to any reserve funds required by this <br /> CONTRACT or by the lender(s) of any indebtedness having a lien on the pledged revenues. <br /> The analysis of revenues shall be based on the BORROWER'S current rate structure or the rate <br /> structure most recently adopted. No more than io%of total revenues may originate from tap <br /> and/or connection fees; <br /> iii. The BORROWER acknowledges and understands that any request for approval of the <br /> issuance of additional debt must be reviewed and approved by the CWCB prior to the <br /> issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT, the <br /> BORROWER shall submit to the CWCB an annual audit report. <br /> io. Pledged Revenues During Loan Repayment.The BORROWER shall not sell, convey, assign, grant, <br /> transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED REVENUES, so long as any of <br /> the principal, accrued interest, and late charges, if any, on this loan remain unpaid, without the prior <br /> written concurrence of the CWCB. <br /> n. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire principal, all <br /> accrued interest, and late charges, if any,as specified in the PROMISSORY NOTE, the CWCB agrees to release <br /> and terminate any and all of the CWCB's right,title, and interest in and to the PLEDGED REVENUES. <br /> 12. Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by its <br /> representations herein, the BORROWER shall be estopped from asserting for any reason that it is <br /> not authorized or obligated to repay the loan to the CWCB as required by this CONTRACT. <br /> b. The BORROWER warrants that it has not employed or retained any company or person, other than <br /> a bona fide employee working solely for the BORROWER, to solicit or secure this CONTRACT and <br /> has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a <br /> Page 5 of i4 <br />