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order to carry out the purposes of this Resolution. The accomplishment of the Project and the <br /> payment of Project Costs are hereby authorized, approved, and ordered. It is hereby determined <br /> that the date of final maturity of the Note does not exceed the estimated life of the Project. <br /> Section 3. Note Details. The Note shall be in substantially the form set forth in <br /> APPENDIX 3 to the Loan Contract with such changes thereto, not inconsistent herewith, as may <br /> be necessary or desirable and approved by the officials of the District executing the same (whose <br /> manual or facsimile signatures thereon shall constitute conclusive evidence of such approval). <br /> The Note shall be in an aggregate principal amount not to exceed $10,000,000 for a loan <br /> repayment term which does not exceed twenty-one years. The Note shall bear interest at an <br /> interest rate of 2.75% per annum (and a net effective interest rate not to exceed 3.00%), <br /> exclusive of late charges and related costs set forth in the Loan Agreement. For a period not to <br /> exceed one year from the effective date of this Resolution the Board hereby delegates to the <br /> President of the District, or in the absence of the President the Vice-President of the District, the <br /> right to determine the terms for the Note within the parameters established above. <br /> Section 4. Pledge for Payment of the Note. <br /> (a) Pledge of Net Revenues. Net Revenues are hereby pledged to the <br /> payment of the Note and the amounts due under the Loan Contract. The Note shall <br /> constitute a first lien upon the Net Revenues, but not necessarily an exclusive first lien. <br /> Pursuant to and in accordance with Section 11-57-208, C.R.S.,Net Revenues, as received <br /> by or otherwise credited to the District, shall immediately be subject to the lien of the <br /> pledge stated above without any physical delivery, filing, or further act. The lien of each <br /> such pledge, and the obligation to perform the contractual provisions made in this <br /> Resolution and the Financing Documents, shall have priority over any or all other <br /> obligations and liabilities of the District except as may be otherwise provided in this <br /> Resolution or in the Financing Documents. The lien of the above pledge shall be valid, <br /> binding, and enforceable as against all persons having claims of any kind in tort, contract, <br /> or otherwise against the District irrespective of whether such persons have notice of such <br /> liens. <br /> (b) Establishment of Accounts. There shall be established and maintained by <br /> the District such accounts or subaccounts within the Water Enterprise Fund necessary or <br /> convenient to carry out the terms and provisions of this Resolution and the Loan <br /> Contract, including without limitation the Note Account and the Reserve Account. <br /> (c) Flow of Funds. The District shall credit to the Water Enterprise Fund all <br /> Revenues immediately upon receipt. The District shall pay from the Water Enterprise <br /> Fund all Operating Expenses as they become due and payable. After such payment or the <br /> allocation of Revenues to such payment, the District shall apply the Net Revenues in the <br /> following order of priority: <br /> FIRST, to the credit of or deposit in the accounts or subaccounts <br /> established for the payment of interest on the Note, the Parity Lien Obligations <br /> and any Future Parity Obligations, the Pro Rata Portion equal to the interest <br /> 5 <br /> 4828-5273-6853.1 <br />