10 . Make the services of said project avai lable within its
<br /> capacity to all persons in the Contractor ' s service area
<br /> without discrimination as to race, color, religion, or natural
<br /> origin at reasonable charges ( including assessments, taxes, or
<br /> fees ) , whether for one or more classes of service, in
<br /> accordance with a schedule of such charges formally adopted by
<br /> the Contractor through its elected officers , as may be modified
<br /> from time to time . The initial rate schedule must be approved
<br /> in writing by the State . Thereafter, the Contractor may,
<br /> subject to the approval of the State, make such modifications
<br /> to the rate schedule as the Contractor deems necessary to
<br /> efficiently and economically provide for the financial
<br /> requirements of the system, including repayment of the State,
<br /> as long as the rate schedule remains reasonable and
<br /> non-discriminatory.
<br /> 11 . Pursuant to its By-Laws , adjust its operating costs and
<br /> service charges and levy assessments from time to time as
<br /> necessary, upon written notice from the State, to provide
<br /> sufficient funds for adequate operation and maintenance,
<br /> emergency repair services, obsolescence reserves , and debt
<br /> reserves, and to assure repayment of the project loan to the
<br /> State as provided herein.
<br /> 12 . Pursuant to its Articles of Incorporation and to its
<br /> By-Laws , the Board of Directors of the Contractor shall take
<br /> all necessary actions consistent therewith to adopt an order or
<br /> resolution authorizing the Contractor to contract this loan
<br /> debt, and authorizing the President and the Secretary to pay
<br /> the indebtedness . Such orders shall be attached hereto as
<br /> Exhibit F and included herein. The Contractor, through a
<br /> majority vote of the stockholders , shall also authorize the
<br /> warranty deed security interest required by the State in
<br /> paragraph B. 16 . below. Evidence of this vote shall be attached
<br /> hereto as Exhibit G and included herein. The above conditions
<br /> must be performed by the Contractor prior to the State
<br /> performance under this contract.
<br /> 13 . Pursuant to its Articles of Incorporat. i.on and to its
<br /> By-Laws , the Contractor, through its stockholders shall take
<br /> all necessary actions consistent therewith to levy assessments
<br /> to raise sufficient funds to pay this ( ,,It„ a Y ...o. n debt in a
<br /> timely manner and as required by the 5, ,.. ,a a , o sitions
<br /> herein to assure repayment of the pro c - othe State.
<br /> In the event that the assessment(s ) levied by t e Contractor,
<br /> or the revenues resulting theref a .o�u,- ufficient
<br /> to assure repayment of the State ur , b i a ,; erms and
<br /> conditions herein, then the Contr�� o t; .n w t; t: Itice
<br /> thereof from the State, shall immediately take a - necessary
<br /> action consistent with its By-Laws, including but not limited
<br /> to additional assessments , to raise sufficient revenue to
<br /> assure repayment of the project loan to the State.
<br /> 14 . Provide the State with such periodic reports as the
<br /> State may require and permit periodic inspections of its
<br /> operations and accounts by a designated representative of the
<br /> State.
<br /> -- 15 . Repay to the State the total principal sum of One
<br /> Hundred Sixty-Nine Thousand Six Hundred Dollars ($169 , 600) ,
<br /> which includes the project loan amount and the Three Thousand
<br /> Dollars ($3 ,000) feasibility report amount, together with
<br /> interest at the rate of five percent (5%) per annum, said
<br /> repayment to be made in constant annual installments of Nine
<br /> Thousand Fight Hundred Eighty-Four Dollars and Twenty-Nine
<br /> Cents ($9 , 884 . 29 ) each, for forty (40) years , as shown in
<br /> Exhibit C, attached hereto and incorporated by reference
<br /> herein, which first installment shall be due and payable on the
<br /> first day of the month next succeeding the month in which the
<br /> State determines that the project has been substantially
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