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State of Washington Department of Ecology
<br />City of Everett
<br />Beverly Lake Water Quality Retrofit Project
<br />Agreement No. WQC-2020-COE-00091
<br />Page 14 of 16
<br />3. Past Due Payments The RECIPIENT shall be in default of its obligations under this loan agreement when any loan
<br />repayment becomes 60 days past due.
<br />4. Other Cause. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full by the
<br />RECIPIENT of all of its obligations under this loan agreement. The RECIPIENT shall be rn default of its obligations under
<br />this loan agreement if, in the opinion of ECOLOGY, the RECIPIENT has unjustifiably failed to perform any obligation
<br />required of it by this loan agreement.
<br />Procedures for Termination. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide to the
<br />RECIPIENT a written notice of termination at least five working days prior to the effective date of termination (the
<br />`Termination Date"). The written notice of termination by the ECOLOGY shall specify the Termination Date and, when
<br />applicable, the date by which the RECIPIENT must repay any outstanding balance of the loan and all accrued interest (the
<br />"Termination Payment Date").
<br />Termination and Default Remedies
<br />No Further Payments. On and after the Termination Date, or in the event of a default event, ECOLOGY may, at its sole
<br />discretion, withdraw the loan and make no further payments under this agreement.
<br />Repayment Demand. In response to an ECOLOGY initiated termination event, or in response to a loan default event,
<br />ECOLOGY may at its sole discretion demand that the RECIPIENT repay the outstanding balance of the Loan Amount and
<br />all accrued interest.
<br />Interest after Repayment Demand. From the time that ECOLOGY demands repayment of funds, amounts owed by the
<br />RECIPIENT to ECOLOGY shall accrue additional interest at the rate of one percent per month, or fraction thereof.
<br />Accelerate Repayments In the event of a default, ECOLOGY may, in its sole discretion, declare the principal of and interest
<br />on the loan immediately due and payable, subject to the prior lien and charge of any outstanding Senior Lien Obligation upon
<br />the Net Revenue. That is, the loan is not subject to acceleration so long as any Senior Lien Obligations are outstanding.
<br />Repayments not made immediately upon such acceleration will incur Late Charges.
<br />Late Charges. All amounts due to ECOLOGY and not paid by the RECIPIENT by the Termination Payment Date or after
<br />acceleration following a default event, as applicable, shall incur late charges.
<br />Intercept State Funds. In the event of a default event and in accordance with Chapter 90 50A.060 RCW, "Defaults," any
<br />state funds otherwise due to the RECIPIENT may, at ECOLOGY's sole discretion, be withheld and applied to the
<br />repayment of the loan.
<br />Property to ECOLOGY. In the event of a default event and at the option of ECOLOGY, any personal property (equipment)
<br />acquired under this agreement may, m ECOLOGY's sole discretion become ECOLOGY's property In that circumstance,
<br />ECOLOGY shall reduce the RECIPIENT's liability to repay money by an. amount reflecting the fair value of such property.
<br />Documents and Materials. If this agreement is terminated, all finished or unfinished documents, data studies, surveys
<br />drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT shall, at the option of
<br />ECOLOGY, become ECOLOGY property. The RECIPIENT shall be entitled to receive just and equitable compensation for
<br />any satisfactory work completed on such documents and other materials.
<br />Collection and Enforcement Actions. In the event of a default event, the state of Washington reserves the nght to take any
<br />actions it deems necessary to collect the amounts due, or to become due, or to enforce the performance and observance of
<br />any obligation by the RECIPIENT, under this agreement.
<br />Fees and Expenses. In any action to enforce the provisions of this agreement, reasonable fees and expenses of attorneys and
<br />other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) shall be awarded to the
<br />prevailing party as that term is defined in Chapter 4.84.330 RCW.
<br />Damages. Notwithstanding ECOLOGY's exercise of any or all of the termination or default remedies provided in this
<br />agreement, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and/or
<br />the state of Washington because of any breach of this agreement by the RECIPIENT ECOLOGY may withhold payments
<br />for the purpose of setoff until such time as the exact amount of damages due ECOLOGY fiom the RECIPIENT is
<br />determined.
<br />T. User -Charge System for Funded Utilities: The RECIPIENT certifies that it has the legal authority to establish and
<br />implement a user -charge system and shall adopt a system of user -charges to assure that each user of the funded utility shall
<br />pay its proportionate share of the cost of operation and maintenance, including replacement during the design life of the
<br />project. The user -charge system will include provisions for a connection charge.
<br />In addition, the RECIPIENT shall regularly evaluate the user -charge system, at least annually, to ensure the system provides
<br />adequate revenues necessary to operate and maintain the funded utility, to establish reserves to pay for replacement, and to
<br />repay the loan.
<br />Template Version 10/30/2015
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