C153827 Contract - Laserfiche WebLink

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12. Pledge of revenues. For the purpose of repayment of this loan, the BORROWER hereby irrevocably pledges from its general revenues (comprised of taxes and assessments) received each year an amount sufficient to pay the annual payment due under this contract. a. Revenues for this loan are to be kept separate. The BORROWER shall set aside and keep the pledged revenues in an account separate from other BORROWER revenues, and shall not use the pledged revenues for any purpose other than repayment of this loan. b. Establish security interest in the revenues. To provide a security interest to the STATE in the pledged revenues so that the STATE shall have priority over all other competing claims for said revenues, the BORROWER shall provide a properly executed Security Agreement, attached hereto as Appendix 4 and incorporated herein. c. Levy assessments for repayment of t/1e loan. The BORROWER shall, pursuant to its statutory authority and as authorized by its resolutions, take all necessary actions consistent therewith during the term of this contract to levy a(ld collect assessments in amounts sufficient to pay this loan as required by this contract and the promissory note, to cover all expenditures for operation and maintenance and emergency repair services, and to maintain adequate debt service reserves. d. Reserve Debt Service Account. THE BORROWER shall deposit an amount equal to one annual payment Into its reserve debt service accOunt. e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness payable from the pledged revenues and having a lien thereon which is superior to the lien of this loan. The BORROWER may issue parity debt only with the prior written approval of the STATE, provided that: i. The BORROWER is currently and at ttle time of the issuance of the parity debt in substantial compliance with all of the obligatiorlS of this contract, including, but not limited to, being current on the annual payments dLle under this contract and in the accumulation of all amounts then required to be accumulated in the BORROWER'S reserve debt service account; ii. The BORROWER provides to the STATE' a Parity Certificate from an independent certified public accountant certifying that, based on an analysis of the BORROWER'S revenues, excluding tap and/or connection fees, for 12 COrlsecutive months out of the 18 months immediately preceding the date of issuance of such parity debt, the BORROWER'S revenues are sufficient to pay at least the annual debt service on all outstanding indebtedness having a lien on the pledged revenues, including this loan, the annual debt service on the proposed indebtedness to be issued, and all required deposit!> to any reserve funds required by this contract or by the lender(s) of any indebtedness havirlg a lien on the pledged revenues. The analysis of revenues shall be based on the BORROWER'S current rate structure. The BORROWER acknowledges and understands that any request for approval of the issuance of parity debt must be reviewed and approved bY the CWCB Executive Director prior to the issuance of any parity debt. 13. Collateral. Part of the security provided for this loan, evidenced by the executed Deed of Trust attached hereto as Appendix 5 and incorporated herein, shall be the land underlying the Julesburg Reservoir located upon Sections Twelve (12), Thirteen (13), Fourteen (14), Twenty-Three (23), and Twenty-Four (24) in Township Eleven (11) North, Range Forty-Eight (48) West, 6'h P.M., and Sections Six (6), Seven (7), Seventeen (17), Eighteen (18), and Nineteen (19) in Township Eleven (11) North, Range Forty-Seven (47) West, 6th P.M., a(ld lying and being partly in both Logan County and Sedgwick County. Both Parties expressly agree that the collateral pledged herein shall not include Julesburg Irrigation District . Page 6 of 12 Loan Contract