C150081 Paid in Full Documents

• Contract/PO #: C150081
• Contractor Name: City of Victor
• Contract Type: Loan
• Loan Projects - Doc Type: Repayment Information

to pay this loan as required by this contract and the promissory note, to cover all
expenditures for operation and maintenance and emergency repair services, and to
maintain adequate debt service reserves, including obtaining voter approval, if necessary,
of increases in the BORROWER'S water user fees.
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
STATE, 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 STATE 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 contract or by the lender(s) of any
indebtedness having a lien on the pledged revenues. The analysis of revenues shall
be based on the BORROWER'S current rate structure or the rate structure most recently
adopted. No more than 10% of total revenues may originate from tap and/or
connection fees.
The BORROWER acknowledges and understands that any request for approval of the
issuance of additional debt must be reviewed and approw,ed -py lthp CWCB Executive
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 STATE an annwal.audit reportand a certificate of debt
d
service coverage from a Certified Public Accountant's 4'R 7
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7. Collateral. The collateral for this loan is described in Profi t S uanm t5. gection 3. The
BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or
otherwise dispose of the collateral for this loan, 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 STATE. In the event of any such sale, transfer or
encumbrance without the STATE'S written concurrence, the STATE 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 STATE of the entire principal,
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