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<br />properly executed Uniform Commercial Code Security Agreement and Financing Statement, hereinafter <br />referred to as UCC DOCUMENT, attached hereto as APPENDIX D and incorporated herein. <br /> <br />c. UCC DOCUMENT renewal. The BORROWER shall, within 60 days prior to' the end of the fifth year that <br />this contract is in effect and every five (5) yearS thereafter, deliver to the STATE a fully and properly <br />executed Continuation Statement (Form UCC-:3) of the UCC DOCUMENT as required by this contract. <br /> <br />d. WATER USER FEES for repayment of the loan. The BORROWER shall, pursuant to its statutory authority <br />and as authorized by its resolution, take all neces~ary actions consistent therewith to assess WATER USER <br />FEES to raise sufficient revenue to repay this loan in a timely manner and as required by the terms and <br />conditions herein. In the event the WATER USE~ FEES become insufficient to assure repayment to the <br />STATE as required by the terms and conditions herein, then the BORROWER shall immediately take all <br />necessary action consistent with its statutory authority and resolutions, including, but not limited to, <br />adjusting the WATER USER FEES to raise sufficient revenue to assure repayment of the loan to the STATE. <br /> <br />e. WATER USE~ FEES for operations, maintenanve and reserves. The BORROWER shall, pursuant to its <br />statutory authority and resolutions, adjust its WATER USER FEES from time to time as necessary to <br />provide sufficient funds for adequate operation and maintenance, emergency repair services, <br />obsolescence reserves and debt reserves. Said debt reserve shall, within five (5) years, contain the <br />equivalent of one-half of an annual loan payme(lt. <br /> <br />11. Loan funds for the PROJECT. BORROWER shllll make written request for loan funds and submit <br />documentation of the total purchase price paid for the PROJECT. Within 20 days of receipt of the written <br />request and after review and acceptance of the documentation, the STATE shall disburse the requested amount <br />to the BORROWER. <br /> <br />12. Periodic Inspections. Throughout the term of this contract, the BORROWER shall permit a designated <br />representative of the STATE to make periodic inspection~ of the PROJECT. Such inspections are solely for the <br />purpose of verifying compliance with the terms and conditions of this contract.' Furthermore, such inspections <br />will cover the condition Of the PROJECT, operating records, maintenance records, and financial records, and shall <br />not be construed nor interpreted as an approval of any element of the PROJECT facilities. <br /> <br />13. Adhere to applicable laws. The BORROWER shall ~trictly adhere to all applicable federal, state, and local <br />laws and regulations that are in effect or may hereafter be established throughout the term of this contract. <br /> <br />14. No discrimination of services. The services of said PROJECT will be made available within its capacity <br />and in accordance with all pertinent statutes, rules and regulations, and operational guidelines to all persons <br />in the BORROWER'S service area without discrimination as to race, color, religion, or national origin at reasonable <br />charges (including assessments or fees), whether for one or more classes of service. in accordance with a <br />schedule of such charges formally adopted by the BORROWER, as may be modified from time to time. <br /> <br />B. The STATE agrees as follows: <br /> <br />1. Agreement to loan money. The STATE agrees to loan to the BORROWER an amount not to exceed that <br />specified in the Promissory Note Provisions of this contract. <br /> <br />2. Disbursements. After receipt, review and approval of the BORROWER'S request for funds and <br />documentation of the purchase price paid for the PROJECT, the STATE will pay to the BOR~OWER the amount of <br />said purchase price. Such payment shall be made within 20 days of receipt of the request and documentation. <br /> <br />3. Release after loan is repaid. Upon complete repayment to the STATE of the entire principal and any <br />accrued interest as specified in the Promissory Note provisions of this contract, the STATE agrees to execute <br />a release of deed of trust to convey to the BORROWER all of the STATE'S right. title. and interest in and to the <br />PROJECT and any other property described in APPENDIX C, and to execute a UCC-3 form to terminate all of <br />the STATE'S rights in and to the revenues pledged to repay this loan. <br /> <br />Morgan County Quality Water District <br /> <br />Page 5 of 9 <br /> <br />Loan Contract <br />