D. Additional Debts or Bonds. The Borrower shall not issue any indebtedness payable from
<br /> the Pledged Revenues or have a lien thereon which is superior to the lien of this loan. The
<br /> Borrower may issue parity debt only with the prior written approval of the CWCB,provided
<br /> that:
<br /> i. The Borrower is currently and at the time of the issuance of the parity debt in substantial
<br /> compliance with all of the obligations of this Contract, including, but not limited to,
<br /> being current on the annual payments due under this Contract.
<br /> ii. The Borrower provides to the CWCB a Parity Certificate from an independent certified
<br /> public accountant certifying that, based on an analysis of the Borrower's revenues, for
<br /> twelve(12)consecutive months out of the eighteen(18)months immediately preceding
<br /> the date of issuance of such parity debt, the Borrower's revenues are sufficient to pay
<br /> its annual operating and maintenance expenses, annual debt service on all outstanding
<br /> indebtedness having a lien on the Pledged Revenues,including this loan,and the annual
<br /> debt service on the proposed indebtedness to be issued. The analysis of revenues shall
<br /> be based on the Borrower's current rate structure or the rate structure most recently
<br /> adopted. No more than ten percent (10%) of total revenues may originate from tap
<br /> 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 /> E. Annual Statement of Debt Coverage. Each year during the term of this Contract, the
<br /> Borrower shall promptly submit, to CWCB, a copy of the annual audit report of an audit
<br /> performed on Borrower's records that relates to this Contract or the Project.
<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 /> 12. 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.
<br /> 13. 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 is
<br /> 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 Contract
<br /> and has not paid or agreed to pay any person,company,corporation,individual,or firm,other
<br /> than a bona fide employee, any fee, commission, percentage, gift, or other consideration
<br /> contingent upon or resulting from the award or the making of this Contract.
<br /> C. The Borrower warrants that the Pledged Revenues for this loan are not encumbered by any
<br /> other deeds of trust or liens of any party other than the CWCB or in any other manner,except
<br /> for the Existing Parity Indebtedness which sets forth the position of the lien created by this
<br /> Contract Number:CT2019-3687 Page 9 of 19 Version 0119
<br />
|