21 ATTACHMENT 3 - Laserfiche WebLink

19 the discretion of the Members during any period in which by reason of any damage or destruction (other than by condemnation, which is provided for separately in the Indenture; see Appendix D) there is a material interruption in the Sewer Service to the Members. The Members’ payments for their Fixed Cost Allocation for Debt Service are not subject to abatement. Abatement will continue for the period commencing with damage or destruction and ending upon the restoration of Sewer Service by LAVWMA. The proceeds of any insurance covering such damage or destruction are required to be deposited and applied by LAVWMA as provided in the Indenture. See “- Insurance” below. Under the Sewer Service Contract, LAVWMA covenants, to the extent permitted by law and subject to any limitations resulting from a disruption in pipeline capacity, to accept wastewater of Members notwithstanding any disruption in pipeline capacity and to use its best efforts in the event of any such disruption to undertake alternative and interim methods of storage and disposal of wastewater. See “Risk Factors - Abatement.” Flow of Funds Under the Indenture LAVWMA covenants in the Indenture to transfer that portion of the LAVWMA Net Revenues which is necessary to pay the principal or Redemption Price of and interest on the Bonds in any Fiscal Year to the Trustee for deposit in the Livermore-Amador Valley Water Management Agency Revenue Fund (the “Revenue Fund”). On or before the second day prior to each Interest Payment Date, the Trustee is required to transfer from the Revenue Fund to the Debt Service Fund for the Bonds (the “Debt Service Fund”) an amount equal to principal (including mandatory sinking fund payments) and interest on the next interest payment date. Within the Debt Service Fund, the Trustee will establish a “Redemption Account.” On or before the date on which Bonds are subject to redemption (see “THE 2021 BONDS – Redemption” above) the Treasurer will transfer to the Trustee for deposit in the Redemption Account an amount at least equal to the Redemption Price (excluding accrued interest, which is payable from the Debt Service Fund) of such Bonds to be redeemed on such date. Amounts in the Redemption Account will be applied by the Trustee solely for the purpose of paying the Redemption Price of Bonds to be redeemed pursuant to the Indenture. If after all of the Bonds have been paid or deemed to have been paid, there are moneys remaining in the Redemption Account, such moneys shall be transferred by the Trustee to the Treasurer for deposit in the Revenue Fund. No Reserve Account LAVWMA will not fund or maintain a debt service reserve fund for the 2021 Bonds and is not required to fund one in connection with the issuance of any Parity Bonds. Rate Covenants The Members covenant under the Sewer Service Contract as follows: (a) Livermore agrees to fix, prescribe and collect Charges in connection with its sewer service to its sewer customers during each Fiscal Year so as to yield Member Net Revenues from such Charges in an amount at least equal to 110% of Livermore’s obligations to LAVWMA due during such Fiscal Year under the Sewer Service Contract and 100% of amounts owed on other Obligations of Livermore due during such Fiscal Year having a lien on such Member Net Revenues.