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14. PLEDGE OF REVENUES <br /> The Borrower irrevocably(but not exclusively)pledges to the CWCB, fo the purpose of repaying <br /> the Total Loan Amount,the Pledged ReventZes,in such amount as is neces ary to make each annual <br /> payment due under this Contract. Such pledge of the Pledged Revenues is on parity with the debt <br /> identified in Section 5 of Appendix 1 (Schedule of Existing Debt)and an additional indebtedness <br /> that may be secured by the Pledged Revenues in the future that is inc 1 ed in accordance with <br /> Section 14.E., hereof, and together with the Existing Parity Debt, shall b- the Borrower's "Parity <br /> Indebtedness." <br /> A. Segregation of Pledged Revenues. The Pledged Revenues shall be accounted for and <br /> maintained in an account separate frpm other Borrower revenues . all times. The Pledged <br /> Revenues shall be used first to pay debt service on the Total Loan A ount and all other Parity <br /> Indebtedness on an equal basis and thereafter may be used for any . d all other expenses. <br /> B. Establish Security Interest. The Borrower has duly executed a Security Agreement, <br /> (attached as Appendix 5)and incorporated herein,to provide a sec ity interest to the CWCB <br /> in the Pledged Revenues. The lien of this Contract on the Pled ted Revenues shall have <br /> priority over all other competing claims with respect to the Pledged Revenues, except for the <br /> parity lien on the Pledged Revenues;of any Party Indebtedness. <br /> C. Assessment Covenant. Pursuant t4 its statutory authority and .s permitted by law, the <br /> Borrower shall take all necessary actions consistent therewith durin t the term of this Contract <br /> to establish, levy and collect rates, dharges and fees as described i I Appendix 5, in amounts <br /> sufficient to pay this loan as required by the terms of this Contract and the Promissory Note, <br /> to cover all expenditures for operation and maintenance and emertency repair services, and <br /> to maintain adequate debt service reserves. <br /> j <br /> D. Debt Service Reserve Account or Fund. To establish and mainta n the debt service reserve <br /> account or fund, the Borrower shall deposit an amount equal t s one-tenth of an annual <br /> payment into its debt service reserve account or fund on the due to of its first annual loan <br /> payment and annually thereafter for the first ten years of repayme t of this loan. In the event <br /> that the Borrower applies funds from this account to repayment f the loan, the Borrower <br /> shall replenish the account within ninety (90) days of withdraw 1 of the funds. The debt <br /> service reserve account or fund requirement is in effect until the 1 an is paid in full. <br /> E. Additional Debts or Bonds. The Borrower shall not issue any i debtedness payable from <br /> the Pledged Revenues and having a lien thereon which is superior o the lien of this loan. The <br /> Borrower may issue parity debt only with the prior written appro al of the CWCB,provided <br /> that: I <br /> i. The Borrower is currently and at the time of the issuance of e parity debt in substantial <br /> compliance with all of the obligations of this Contract, in luding, but not limited to, <br /> being current on the annual payments due under this Contract and in the accumulation <br /> of all amounts then required to be accumulated in the Borrower's debt service reserve <br /> fund; <br /> Page 7of1 <br /> Contract Number:CT2019-2099 <br />