Laserfiche WebLink
State of Washington Department of Ecology <br />Agreement No: WQC-2022-EverPW-00085 <br />Project Title: Water Quality Treatment at 3rd Avenue SE <br />Recipient Name: City of Everett <br />Page 29 of 44 <br />agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan repayment <br />schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued <br />interest to the computation date. <br />The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a "Loan Amount") shall bear interest <br />based on the interest rate identified in this agreement as the "Effective Interest Rate," per annum, calculated on the basis of a <br />365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that <br />each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments, semiannually, over <br />the term of this loan "Loan Term" as outlined in this agreement. <br />J. Loan Repayment: <br />Sources of Loan Repayment <br />1. Nature of RECIPIENT's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below <br />and to perform and observe all other agreements and obligations on its part, contained herein, shall be absolute and <br />unconditional, and shall not be subject to diminution by setoff, counterclaim, or abatement of any kind. To secure the <br />repayment of the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants, agreements, and <br />attachments contained herein. <br />2. For General Obligation. This loan is a General Obligation Debt of the RECIPIENT. <br />3. For General Obligation Payable from Special Assessments. This loan is a General Obligation Debt of the RECIPIENT <br />payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without <br />a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. <br />4. For Revenue -Secured: Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan shall <br />constitute a lien and charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net Revenue of any <br />Senior Lien Obligations. <br />In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall constitute a <br />lien upon ULID Assessments in the ULID prior and superior to any other charges whatsoever. <br />5. Other Sources of Repayment. The RECIPIENT may repay any portion of the loan from any funds legally available to it. <br />6. Defeasance of the Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT shall not be entitled to, and shall not <br />affect, an economic Defeasance of the loan. The RECIPIENT shall not advance refund the loan. <br />If the RECIPIENT defeases or advance refunds the loan, it shall be required to use the proceeds thereof immediately upon <br />their receipt, together with other available RECIPIENT funds, to repay both of the following: <br />(i) The Loan Amount with interest <br />(ii) Any other obligations of the RECIPIENT to ECOLOGY under this agreement, unless in its sole discretion ECOLOGY <br />finds that repayment from those additional sources would not be in the public interest. <br />Failure to repay the Loan Amount plus interest within the time specified in ECOLOGY's notice to make such repayment shall <br />incur Late Charges and shall be treated as a Loan Default. <br />7. Refinancing or Early Repayment of the Project. So long as ECOLOGY shall hold this loan, the RECIPIENT shall give <br />ECOLOGY thirty days written notice if the RECIPIENT intends to refinance or make early repayment of the loan. <br />Method and Conditions on Repayments <br />1. Semiannual Payments. Notwithstanding any other provision of this agreement, the first semiannual payment of principal and <br />interest on this loan shall be due and payable no later than one year after the project completion date or initiation of operation <br />date, whichever comes first. <br />Thereafter, equal payments shall be due every six months. <br />If the due date for any semiannual payment falls on a Saturday, Sunday, or designated holiday for Washington State agencies, <br />the payment shall be due on the next business day for Washington State agencies. <br />Payments shall be mailed to: <br />Department of Ecology <br />Template Version 12/10/2020 <br />