2007/05/16 Council Agenda Packet

• I n The BORROWER has the right to repay the unpaid balance of the loan in full at any time or make accelerated payments without penalty. The BORROWER will repay the loan in accordance with the preceding conditions through the use of a check, money order, or equivalent means made payable to the Washington State Department of Community,Trade and Economic Development,or its successor. 4.06 Default in Repayment Loan repayments shall be made on the loan in accordance with Section 4.05 of this agreement. A payment not received within thirty (30) days of the due date shall be declared delinquent. Delinquent payments shall be assessed a monthly penalty beginning on the first (1') day past the due date. The penalty will be one percent (1%) per month or twelve percent (12%) per annum of the delinquent payment amount. These same penalty terms shall apply if the repayment of loan funds determined to be ineligible costs are not repaid within 30 days as provided for in Section 4.02. The BORROWER acknowledges and agrees to the BOARD's right, upon delinquency in the payment of any annual installment,to notify any other entity, creditors,or potential creditors of the BORROWER of such delinquency. BORROWER shall be responsible for all legal fees incurred by the BOARD in any action undertaken to enforce its rights under this section. 4.07-.Loan Security This loan is a revenue obligation of the BORROWER payable solely from the net revenue of the Water/Sanitary Sewer system. Payments shall be made from the net revenue of the utility after the payment of the principal and interest on any revenue bonds,notes, warrants or other obligations of the utility having a lien on that net revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance and operations. The BOARD grants the BORROWER the right to issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien and charge of this loan agreement. This option may be used only if the entire project is a domestic water, sanitary sewer, storm sewer or solid waste utility project. 4.08 Historical and Cultural Artifacts The BORROWER acknowledges that the project funded by this Agreement is subject to Section 106 of the National Historic Preservation Act of 1966. Borrower agrees that Borrower is legally and financially responsible for compliance with all laws, regulations, and agreements related to the preservation of historical or cultural artifacts and agrees to hold harmless the State of Washington in relation to any claim related to such historical or cultural artifacts discovered, disturbed, or damaged as a result of Borrower's public works project funded under this agreement. iO CITY OF EVERETT Page 5 4/24/2007