CT2018-2028 Contract

• Contract/PO #: CT2018-2028
• Contractor Name: Left Hand Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

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coming due on the next succeeding interest payment date for the respective
obligations;
SECOND, to the credit of or deposit in the accounts or subaccounts
established for the payment of principal on the Note, the Parity Lien Obligations
and any Future Parity Obligations, the Pro Rata Portion equal to the principal
coming due on the next succeeding principal payment date for the respective
obligations;
THIRD, to the credit of any reserve accounts established for the payment
of the Note, the Parity Lien Obligations and any Future Parity Obligations the
amounts required in the resolutions or related documents authorizing and
controlling the establishment of such reserve accounts; and
FOURTH, to the credit of any other fund or account as may be designated
by the District, to be used for any lawful purpose, any moneys remaining in the
Water Enterprise Fund after the payments and accumulations set forth in FIRST
through THIRD hereof.
(d) The Note Does Not Constitute a Debt. CWCB may not look to any
general or other fund of the District for the payment of the principal of or interest on the
Note, except the funds and accounts pledged thereto pursuant to authority of this
Resolution, and the Note shall not constitute a debt or an indebtedness of the District
within the meaning of any constitutional or statutory provision or limitation; nor shall
they be considered or held to be a general obligation of the District.
Section 5. Various Findings, Determinations, Declarations and Covenants. The
Board, having been fully informed of and having considered all the pertinent facts and
circumstances, hereby reaffirms the covenants set forth in the Loan Contract and further finds,
determines, declares and covenants that:
(a) Additional Obligations. No bonds, notes, interim securities or other
obligations shall be issued payable from the Net Revenues and having a lien thereon
which is on a parity with or subordinate to the lien of the Note unless the requirements set
forth in Section 14(E)of the Loan Contract have been met.
(b) Note Account. Moneys in the Note Account shall be used solely for the
purpose of paying the interest on and principal of the Note on each Payment Date. Upon
the determination that the Project is substantially complete the District shall, on or before
the last day of each month, credit to the Note Account from the Net Revenue an amount
equal to the Pro Rata Portion of the interest and principal to come due on the Note on the
next succeeding Payment Date. In the event of insufficient Net Revenue, moneys shall
be first applied to the payment of interest.
(c) Reserve Account.
(i) Use of Moneys in the Reserve Account. Moneys in the Reserve
Account shall be used, if necessary, only to prevent a default in the payment of
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