AGENDA REPORTS - Laserfiche WebLink

Name of Recipient Agreement No.: XX-XXX-550 Project No.: C-06-XXXX-XXX (1) Placement on the ballot of an initiative or referendum to reduce Revenues; (2) Passage of such an initiative or referendum; (3) Successful challenges by ratepayer(s) to the process used by Recipient to set, dedicate, or otherwise secure Revenues; or (4) Any other action or lack of action that may be construed by the Division as a material violation or threat thereof. 3.7 Pledge; Rates, Fees and Charges; Additional Debt. (a) Establishment of Enterprise Fund and Reserve Fund. In order to carry out its Material Obligations, the Recipient agrees and covenants that it shalt establish and maintain or shall have established and maintained the Enterprise Fund. .All Revenues received shall be deposited when and as received in trust in the Enterprise,Fund!To the extent required in Exhibit D of this Agreement, the Recipient agrees to establish and maintain a Reserve Fund. / (b) Pledge of Net Revenues, Enterprise Fund, and Reserve Fund. The Obligation hereunder shall be secured by a lien on and pledge of theEnterprise Fund, Net Revenues;and any Reserve Fund specified in Exhibit Din priority as specified:n Exhibit F,(senior, parity,Or subordinate). The Recipient hereby pledges and grants sucti'iiemon-andpledge of the Enterprise Fund, Net Revenues, and any Reserve Fund'specified in Exhibit D/to secure the Obligation, including payment of Installment Payments and'Additional Payments hereunder. The Net Revenues in the Enterprise Fund shall be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien tesuch pledge shall be valid and binding as against all parties having claims of any-kind in tort, contract, or otherwise against the Recipient. (c) Application and Purpose of the Enterprise Fund. Subject to'the provisions of any outstanding Material Obligations, money,on,deposit in,the Enterprise Fund shall be applied and used first,to pay Operations'and Maintenance Costs, and thereafter, all amounts due and payable with respect to the Material•Obligations.._After making all payments hereinabove required to be made in each Fiscal Year;the Recipient,may expend irr such Fiscal Year any remaining money in the Enterprise Fund for any lawful purpose of the Recipient, including payment of subordinate debt. (d).Rates, Fees and Charges. The Recipient agr es, to the extent permitted by law, to fix, prescribe and'collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair and nondiscriminatory and which will be at least sufficient to yield during each Fiscal'Year Net Revenues equal to the debt service on Material Obligations, including the Obligation, for such Fiscal Year, plus any coverage ratio specified in Exhibit D of this Agreement. The Recipient may make.:adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effectunless the Net Revenues from such reduced rates, fees and charges will at all times be sufficient to meet the requirements of this section. (e) Additional Debt Test. (1) The Recipient's future debt that is secured by revenues pledged herein may not be senior to this Obligation, except where the new senior obligation refunds or refinances a senior obligation with the same lien position as the existing senior obligation, the new senior obligation has the same or earlier repayment term as the refunded senior debt, the new senior debt service is the same or lower than the existing debt service, and the new senior debt will not diminish the applicant's ability to repay its CWSRF obligations. 14