WA Dept of Ecology WQC-2016-EverPW-00014 6/8/2016

State of Washington Department of Ecology Page 16 of 41 Agreement No: WQC-2016-EverPW-00014 Project Title: Cleveland Ave.Sewer Replacement and Stormwater Separation Recipient Name: City of Everett-Public Works Department "Effective Date"means the earliest date on which eligible costs may be incurred. "Effective Interest Rate"means the total interest rate established by Ecology that includes the Administrative Charge. "Estimated Loan Amount"means the initial amount of funds loaned to the RECIPIENT. "Estimated Loan Repayment Schedule"means the schedule of loan repayments over the term of the loan based on the Estimated Loan Amount. "Equivalency"means projects designated by ECOLOGY to meet additional federal requirements. "Final Accrued Interest"means the interest accrued beginning with the first disbursement of funds to the RECIPIENT through such time as the loan is officially closed out and a final loan repayment schedule is issued. "Final Loan Amount"means all principal of and interest on the loan from the Project Start Date through the Project Completion Date. "Final Loan Repayment Schedule"means the schedule of loan repayments over the term of the loan based on the Final Loan Amount. "Forgivable Principal"means the portion of a loan that is not required to be paid back by the borrower. "General Obligation Debt"means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the RECIPIENT and by the full faith,credit,and resources of the RECIPIENT. "General Obligation Payable from Special Assessments Debt"means an obligation of the RECIPIENT secured by a valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. "Gross Revenue"means all of the earnings and revenues received by the RECIPIENT from the maintenance and operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund,except(i)Utility Local Improvement Districts(ULID)Assessments,(ii)government grants,(iii)RECIPIENT taxes,(iv)principal proceeds of bonds and other obligations,or(v)earnings or proceeds(A)from any investments in a trust,Defeasance, or escrow fund created to Defease or refund Utility obligations or(B)in an obligation redemption fund or account other than the Loan Fund until commingled with other earnings and revenues of the Utility or(C)held in a special account for the purpose of paying a rebate to the United States Government under the Internal Revenue Code. "Guidelines"means the ECOLOGY's Funding Guidelines that that correlate to the State Fiscal Year in which the project is funded. "Initiation of Operation Date"means the actual date the Water Pollution Control Facility financed with proceeds of the loan begins to operate for its intended purpose. "Loan"means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund (Centennial)Loan made pursuant to this loan agreement. Version 10/30/2015