C150062 Paid in Full Documents

• Contract/PO #: C150062
• Contractor Name: Town of Monument
• Contract Type: Loan
• Loan Projects - Doc Type: Repayment Information

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d. Debt Service Reserve Account. To establish and maintain the debt service reserve
account, the BORROWER shall deposit an amount equal to one-tenth of an annual payment
into its debt service reserve fund on the due date of its first annual loan payment and
annually thereafter for the first ten years of this loan. In the event that the BORROWER
applies funds from this account to repayment of the loan, the BORROWER shall replenish
the account within ninety (90) days of withdrawal of the funds.
e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness payable
from the pledged revenues and having a lien thereon which is superior to the lien of this
loan. The BORROWER may issue parity debt only with the prior written approval of the
CWCB, provided that:
i. The BORROWER is currently and at the time of the issuance of the parity debt in
substantial compliance with all of the obligations of this contract, including, but not
limited to, being current on the annual payments due under this contract and in the
accumulation of all amounts then required to be accumulated in the BORROWER'S
debt service reserve fund;
ii. The BORROWER provides to the CWCB a Parity Certificate from an independent
certified public accountant certifying that, based on an analysis of the BORROWER'S
revenues, for 12 consecutive months out of the 18 months immediately preceding
the date of issuance of such parity debt, the BORROWER'S revenues are sufficient to
pay its annual operating and maintenance expenses, annual debt service on all
outstanding indebtedness having a lien on the pledged revenues, including this loan,
the annual debt service on the proposed indebtedness to be issued, and all required
deposits to any reserve funds required by this contractor or by the lender(s) of any
indebtedness having a lien on the pledged revenues. The apaiysit'or,rebcenues shall
be based on the BORROWER'S current rate structure!or the rate strq,ture most
recently adopted. No more than 10% of total revenues May--orrgfrr to from tap
and/or connection fees.
The BORROWER acknowledges and understands that any fiegi t idr p hovel of the
issuance of additional debt must be reviewed and
.a
issuance EF.3Jxutive
Director prior to the issuance of any additional debt.
f. Annual Statement of Debt Coverage. Each year during the term of this contract, the
BORROWER shall submit to the CWCB an annual audit report and a certificate of debt
service coverage from a Certified Public Accountant.
7. Collateral. The collateral for this loan is described in Section 5 (Collateral) of the Project
Summary. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge,
encumher_ nr otherwise dispnse of the collateral for this Ivan including the Pledged
Revenues, so long as any of the principal, accrued interest, and late charges, if any, on this
loan remain unpaid, without the prior written concurrence of the CWCB. In the event of any
such sale, transfer or encumbrance without the CWCB's written concurrence, the CWCB
may at any time thereafter declare all outstanding principal, interest, and late charges, if
any, on this loan immediately due and payable.
8. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
principal, all accrued interest, and late charges, if any, as specified in the Promissory Note,
the CWCB agrees to release and terminate any and all of the CWCB's right, title, and interest
in and to the collateral and the revenues pledged to repay this loan.
Town of Monument Page 3 of 9 Loan Contract