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8 <br /> Maintenance and Operation of a Funded Utility <br /> The RECIPIENT will at all times maintain and keep a funded Utility in good repair,working order and <br /> condition and also will at all times operate the Utility and the business in an efficient manner and at a <br /> reasonable cost. <br /> Collection of ULID Assessments (if used to secure,the repayment of this LOAN) <br /> All ULID Assessmentsin the ULID will be paid into the Loan Fund and used to pay the principal of <br /> and interest on the LOAN. The ULID Assessments in the ULID may be deposited into the Reserve <br /> Account to satisfy a Reserve Requirement if a Reserve Requirement is applicable. <br /> Reserve Requirement <br /> For loans that are Revenue-Secured Debt with terms greater than five years,the RECIPIENT must <br /> accumulate a reserve for the LOAN equivalent to at least the Average Annual Debt Service on the <br /> LOAN during the first five years of the repayment period of the LOAN. This amount will be <br /> deposited in a Reserve Account in the LOAN Fund in approximately equal annual payments <br /> commencing within one year after the Initiation of Operation or the PROJECT Completion Date, <br /> whichever comes first. <br /> "Reserve Account"means, for a LOAN that constitutes Revenue-Secured Debt,an account of that <br /> name created in the Loan Fund to secure the payment of the principal and interest on the LOAN. The <br /> amount on deposit in the Reserve Account may be applied by the RECIPIENT(i)to make, in part or in <br /> full, the final repayment to the DEPARTMENT of the LOAN Amount or,(ii)if not so applied, for any <br /> other lawful purpose of the RECIPIENT once the LOAN Amount, plus interest and any other amounts <br /> owing to the DEPARTMENT,.have been paid in full. <br /> Free Service <br /> The RECIPIENT will not furnish Utility service to any customer free of charge if providing that free <br /> service will affect the RECIPIENT's ability to meet the obligations of this AGREEMENT. <br /> Sale or Disposition of Utility <br /> The RECIPIENT will not sell, transfer,or otherwise dispose of any of the works, plant,properties, <br /> facilities or other part of the Utility, or any real or personal property comprising a part of the Utility <br /> unless one of the following applies: <br /> 1. The facilities or property transferred are not material to the operation of the Utility; or have <br /> become unserviceable, inadequate,obsolete, or unfit to be used in the operation of the Utility; <br /> or are no longer necessary,material, or useful to the operation of the Utility. <br /> 2. The aggregate depreciated cost value of the facilities or property being transferred in any <br /> fiscal year comprises no more than three percent of the totalassets of the Utility. • <br /> 3. The RECIPIENT receives from the transferee an amount which will be in thesame proportion <br /> to the net amount of Senior Lien Obligations and this LOAN then outstanding(defined as the <br /> total amount outstanding less the amount of cash and investments in the bond and loan funds <br /> securing such debt) as the Gross Revenue of the Utility from the portion of the Utility sold or <br /> disposed of for the preceding year bears to the total Gross Revenue for that period. <br /> The proceeds of any transfer under this paragraph will be used(i)to redeem promptly, or irrevocably <br /> set aside for the redemption of, Senior Lien Obligations and to redeempromptly the LOAN, or(ii)to <br /> provide for part of the cost of additions to and betterments and extensions of the Utility. <br /> 54 <br /> Page 3 of ATTACHMENT 4 <br />