|
i. The BORROWER is currently and at the time of the issuance of the parity debt
<br /> in substantial compliance with all of the obligations of this contract, including,
<br /> but not limited to, being current on the annual payments due under this
<br /> contract and in the accumulation of all amounts then required to be
<br /> accumulated in the BORROWER'S debt service reserve fun
<br /> ii. The BORROWER provides to the CWCB a Parity , K iat ,;o an
<br /> independent certified public accountant certifying that, ba ee4or 4 -.zeal :.is of
<br /> the BORROWER'S revenues, for 12 consecutive 4 - 'Lit of the onths
<br /> preceding immediatelyrecedin the date of issuanc. ,,• cli, '.y debt, the
<br /> ,
<br /> BORROWER'S revenues are sufficient to pay itS '':nn y• ng :Ind
<br /> maintenance expenses, annual debt service on all outstandin•= ' t • e s
<br /> having a lien on the pledged revenues, including this loan, the annua it
<br /> service on the proposed indebtedness to be issued, and all required deposits
<br /> to any reserve funds required by this contract or by the lender(s) of any
<br /> indebtedness having a lien on the pledged revenues. The analysis of
<br /> revenues shall be based on the BORROWER'S current rate structure or the rate
<br /> structure most recently adopted. No more than 10% of total revenues may
<br /> originate from tap and/or connection fees.
<br /> The BORROWER acknowledges and understands that any request for approval of
<br /> the issuance of additional debt must be reviewed and approved by the CWCB
<br /> Director prior to the issuance of any additional debt.
<br /> f. Annual Statement of Debt Coverage. Each year during the term of this contract,
<br /> the BORROWER shall submit to the CWCB an annual audit report and a certificate of
<br /> debt service coverage from a Certified Public Accountant.
<br /> 9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell,
<br /> convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of
<br /> the Pledged Revenues, so long as any of the principal, accrued interest, and late
<br /> charges, if any, on this loan remain unpaid, without the prior written concurrence of
<br /> the CWCB.
<br /> 10. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
<br /> principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br /> Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
<br /> and interest in and to the Pledged Revenues.
<br /> 11. Warranties.
<br /> a. The BORROWER warrants that, by acceptance of the loan under this contract and by
<br /> its representations herein, the BORROWER shall be estopped from asserting for any
<br /> reason that it is not authorized or obligated to repay the loan to the CWCB as
<br /> required by this contract.
<br /> b. The BORROWER warrants that it has not employed or retained any company or
<br /> person, other than a bona fide employee working solely for the BORROWER, to
<br /> solicit or secure this contract and has not paid or agreed to pay any person,
<br /> company, corporation, individual, or firm, other than a bona fide employee, any fee,
<br /> Page 4 of 10
<br />
|