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SECTION 4-BOARD APPROVAL <br /> At its March 23, 2017 meeting, the CWCB approved a Project Loan from the Severance <br /> Tax Perpetual Base Fund, to the BORROWER, in an amount up to $2,385,000.00 for <br /> PROJECT Costs. CWCB's LOAN ORIGINATION FEE of i%in the amount of$23,850.00, in <br /> accordance with CWCB Policy No. i6, added to the BASE LOAN AMOUNT results in a <br /> TOTAL LOAN AMOUNT of$2,408,850.00, at an interest rate of 2.4o%per annum for a <br /> repayment term of 3o years. <br /> SECTION 5-SCHEDULE OF EXISTING DEBT <br /> As of the date of the CWCB loan approval, the BORROWER has outstanding the <br /> following obligations, which constitute EXISTING PARITY LOANS under the LOAN <br /> CONTRACT and will require a Parity Certificate: <br /> EXISTING DEBT OBLIGATION <br /> Original Current Annual Maturity <br /> Lender Balance Balance Payments Date Collateral <br /> Water activity enterprise <br /> USDA (2011) $3,327,000 $3,027,233 $126,626 2051 revenues <br /> USDA (2013) $549,000 $520,315 $20,446 2053 Water activity enterprise <br /> revenues <br /> The BORROWER will provide to the CWCB a Parity Certificate, from an independent <br /> certified public accountant, certifying that based on an analysis of the BORROWER'S <br /> revenues, for 12 consecutive months out of the i8 months immediately preceding the <br /> date of issuance of such parity debt, the BORROWER'S revenues are sufficient to pay <br /> its annual operating and maintenance expenses, annual debt service on all <br /> outstanding indebtedness having a lien on the PLEDGED REVENUES, including this <br /> loan, the annual debt service on the proposed indebtedness to be issued, and all <br /> required deposits to any reserve funds required by this CONTRACT or by the lender(s) <br /> of any indebtedness having a lien on the pledged revenues. The analysis of revenues <br /> shall be based on the BORROWER'S current rate structure or the rate structure most <br /> recently adopted. No more than io% of total revenues may originate from tap <br /> and/or connection fees. <br /> SECTION 6-LOAN SECURITY <br /> The SECURITY for this loan, as evidenced by the executed SECURITY AGREEMENT <br /> (APPENDIX 5) and incorporated herein, shall be: (i) an irrevocable (but not exclusive) <br /> pledge to the CWCB of the PLEDGED REVENUES in such amount as is necessary to <br /> make each annual payment due under this LOAN CONTRACT, on a parity with all <br /> PARITY INDEBTEDNESS; (ii) a rate covenant; and (iii) annual financial reporting in <br /> accordance with CWCB Policy No. 5. <br /> Appendix i <br /> Page 2 of 6 <br />