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State of Washington Department of Ecology Page 14 of 16
<br /> City of Everett
<br /> Beverly Lake Water Quality Retrofit Project
<br /> Agreement No.WQC-2020-COE-00091
<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 in 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, in 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 right 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 from 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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