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15 <br /> 4.07 Default in Repayment <br /> A payment not received within thirty(30)days of the due date shall be declared delinquent. Delinquent <br /> payments shall be assessed a daily penalty beginning on the thirty-first(31)day past the due date. The penalty <br /> will be assessed on the entire payment amount. The penalty will be twelve percent(12%)per annum <br /> calculated on a 360-day year. <br /> The LOCAL GOVERNMENT acknowledges and agrees to the BOARD'S right, upon delinquency in the <br /> payment of any annual installment, to notify any other entity, creditors, or potential creditors of the LOCAL <br /> GOVERNMENT of such delinquency including, without limitation, the state government and the United States <br /> of America or its agencies, credit rating agencies, and the municipal finance market The LOCAL <br /> GOVERNMENT shall pay the costs and reasonable legal fees incurred by the BOARD in any action undertaken <br /> to enforce its rights under this section. <br /> 4.08 Repayment Account <br /> The BORROWER shall repay the loan accordinP to the option designated in Section 4.09 Loan Security. The name <br /> of the fund,account,or sub-account shall be I-UtcJ 9 v i- VT(/:ti cS <br /> 4.09 Loan Security <br /> The BORROWER must select one of the following options for securing repayment of the loan. Please initial <br /> the appropriate option. <br /> 1. General Obligation: This loan is a general obligation of the BORROWER. <br /> OR <br /> 2• Revenue Obligation: This option may be used only if the entire project is a domestic water <br /> projec <br /> This loan is a revenue obligation of the BORROWER payable solely from the net revenue of the utility system <br /> indicated below. Payments shall be made from the net revenue of the utility after the payment of the principal <br /> and interest on any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net <br /> revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance and operations. <br /> The BOARD grants the BORROWER the right to issue future bonds and notes that constitute a lien and <br /> charge on net revenue superior to the lien and charge of this loan agreement. <br /> If selecting the revenue obligation, please choose and initial one of the following utility systems: <br /> Water <br /> Combined Water Utility <br /> (Water/Sewer; Water/Sewer/Irrigation; etc.) <br /> 79 Page5 <br /> SRF Loan Agreement <br /> Municipal Systems <br />