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b <br /> 4.09 Loan Security <br /> The LOCAL GOVERNMENT must select one of the following options for securing repayment of the <br /> loan. Please initial the appropriate option. <br /> 1. General Obligation: This loan is a general obligation of the LOCAL GOVERNMENT. <br /> OR <br /> - 2. Revenue Obligation: This option may be used only if the entire project is a domestic <br /> water, 'tary sewer, storm sewer or solid waste utility project. LOCAL GOVERNMENTS performing <br /> a storm sewer project that have not created a storm sewer utility or a combined sanitary sewer/storm <br /> sewer utility may not use this option. Projects providing for a mixture of bridge, road, domestic water, <br /> sanitary sewer,and storm sewer activities may not use this option. <br /> This loan is a revenue obligation of the LOCAL GOVERNMENT payable solely from the net revenue of <br /> the utility system indicated below. Payments shall be made from the net revenue of the utility after the <br /> payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the <br /> utility having a lien on that net revenue. As used here, "net revenue" means gross revenue minus <br /> expenses of maintenance and operations. The BOARD grants the LOCAL GOVERNMENT the right to <br /> issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien and <br /> charge of this loan agreement. <br /> Please choose and initial one of the following utility systems: <br /> Water <br /> Sanitary Sewer(Wastewater) <br /> Stormwater <br /> Water/Sanitary Sewer <br /> • <br /> Stormwater/Sanitary Sewer <br /> Solid Waste <br /> OR <br /> 3. Local Improvement District: Pursuant to RCW 35.51.050, the LOCAL <br /> GOVERNMENT pledges to repay this loan from assessments collected from a Local Improvement <br /> District, Local Utility District or other similar special assessment district in which the improvements <br /> financed by this loan are . located. The name of the special assessment district is <br /> Nothing in this section shall absolve the LOCAL GOVERNMENT of its obligation to make loan <br /> repayments when due, and to adjust rates, fees, or surcharges, if necessary, to meet its obligations under <br /> this agreement. <br /> Page 6 <br /> 2005 PWTF Construction Loan Agreement <br /> • 17 <br />