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ii. The Borrower provides 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 18 months immediately preceding the
<br /> date of issuance of such parity debt, the Borrower's revenues are sufficient to pay its
<br /> annual operating and maintenance expenses, annual debt service on all outstanding
<br /> indebtedness having a lien on the pledged revenues, including this loan, the annual
<br /> debt service on the proposed indebtedness to be issued, and all required deposits to
<br /> any reserve funds required by this Contract or by the lender(s) of any indebtedness
<br /> having a lien on the pledged revenues. The analysis of revenues shall be based on the
<br /> Borrower's current rate structure or the rate structure most recently adopted. No more
<br /> than 10%of total revenues may originate from tap and/or connection fees;
<br /> iii. The Borrower acknowledges and understands that any request for approval of the
<br /> issuance of additional debt must be reviewed and approved by the CWCB prior to the
<br /> issuance of any additional debt.
<br /> F. Pledged Revenues During Loan Repayment. The Borrower shall not sell, convey, assign,
<br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Revenues,
<br /> so long as any of the principal, accrued interest, and late charges, if any, on this loan remain
<br /> unpaid, without the prior written concurrence of the CWCB.
<br /> 15. PLEDGE OF PROPERTY.
<br /> The Borrower irrevocably pledges to the CWCB, for purposes of repayment of this loan, an
<br /> interest in the Pledged Property. The Pledged Property as further described in Section 6 (Loan
<br /> Security) of Appendix 1 is authorized by the Borrower's Authorizing Resolution, and secured by
<br /> the Deed of Trust(attached as Appendix 6).
<br /> A. Pledged Property during Loan Repayment. The Borrower shall not sell, convey, assign,
<br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Property
<br /> so long as any of the principal, accrued interest, and late charges, if any, on this loan remain
<br /> unpaid, without the prior written concurrence of the CWCB. In the event of any such sale,
<br /> transfer or encumbrance without the CWCB's written concurrence, the CWCB may at any
<br /> time thereafter declare all outstanding principal, interest, and late charges, if any, on this
<br /> loan immediately due and payable.
<br /> 16. RELEASE AFTER LOAN IS REPAID.
<br /> Upon complete repayment to the CWCB of the entire principal, all accrued interest, and late
<br /> charges, if any, as specified in the Promissory Note, the CWCB agrees to release and terminate
<br /> any and all of the CWCB's right, title, and interest in and to the Pledged Revenues and the
<br /> Pledged Property.
<br /> 17. WARRANTIES.
<br /> A. The Borrower warrants that, by acceptance of the loan under this Contract and by its
<br /> representations herein, the Borrower shall be estopped from asserting for any reason that it
<br /> is not authorized or obligated to repay the loan to the CWCB as required by this Contract.
<br /> B. The Borrower warrants that it has not employed or retained any company or person, other
<br /> than a bona fide employee working solely for the Borrower, to solicit or secure this
<br /> Contract and has not paid or agreed to pay any person, company, corporation, individual, or
<br /> firm, other than a bona fide employee, any fee, commission, percentage, gift, or other
<br /> consideration contingent upon or resulting from the award or the making of this Contract.
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<br /> Contract Number:CT2018-1999
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