|
(d) Tile Recipient agrees to impose and collect rates and charges in compliance with Minnesota Statutes
<br />and in accordance with the Recipient's oenJoe charge system, so that sufficient gnmo revenues are
<br />available, together with other sources as may be applicable, for the payment of system costs, including
<br />operation and maintenance expenses and principal, interest and servicing fees doe on any outstanding
<br />debt payable from those revenues. Tile Recipient agrees to annually review and ensure that the gross
<br />revenues are muM|den1for the payment ofall system costs.
<br />Section 1.5 Mandatory Payments. (a) The Kodp1ont must repay tha pdn6pal amount of the Loan,
<br />together with accrued interest and servicing fees, in the arnOUnts and oil �14,dates set forth in Exhibit A
<br />attached hereto (notwithstanding the rate of disbursement of the 0 s of the Loan), subject to
<br />adjustment as set forth in Section 1.3 or 1.6. The interest pa i6 , n , t shown oil Exhibit A is for
<br />informational purposes only; the actual interest payment will W-th b` unt of interest which has
<br />accrued to the date of payment, Tile Authority will be entitled to fata". in urposes any interest
<br />earnings on Loan proceeds that are not disbursed and will,n`& be obli it any such interest
<br />earnings against any required repayment of principal of interest an'dl�ervicing fees. Any
<br />payment of principal or interest received by tile Autho'rity"in excess of tile amounts s6forth in Exhibit
<br />A, as then in effect, which is not a mandatory paym6IIt#s,,designatedJil paragraph MI.Orriot expressly
<br />designated by the Recipient to be treated as an option"61',' Oepa�
<br />Authority, be (i) held without interest payable bythe Authoit`V,,,�
<br />tile Loan in a manner determined by the,Autljority, (ii) treate
<br />or (iii) returned to tile Recipient as an 6y"" t Other th
<br />by the Authority in enforcing any provisio'�`,`6f, the IN6t6,,6tthi
<br />accrued and unpaid interest and servicing feb(s he N n
<br />Note then due.
<br />in the sole discretion of the
<br />applied to a future payment due on
<br />repayment of principal on tile Loan,
<br />apa, yments, the Authority will apply
<br />iptdfany costs or expenses incurred
<br />e rylp" ntj, second, to the payment of
<br />J, to'� payment of principal of the
<br />(b) if the Recipient hadoliidgecl io'th6,repayment6f't46 Loan revenues subject to prepayment or lump -
<br />sum payments by', third party, such as special'a , �sessments or connection charges from another
<br />municipality, tile Reci'p'ient,will noti Vthe.AUtllority iiihm,e diately upon receipt of any such payment. Tile
<br />Authority, in its sole discre Jon,,may diY&P,tJhe_Recipl6nt to use the funds for tile payment of eligible
<br />constrtiction--Cbsts-.of the Priojecti,`br to trans' tjbejunds to the Authority for payment on the Loan,
<br />immediately bf-at ii,lat , er date.'' Any such paymen'i-,feceived by the Authority may be applied to reduce
<br />each id annual prin I
<br />pripa pq instalimbritof the Loan in the proportion thatsuch installment bears tothe
<br />t6t6lbf all unpaid principal lnstallm6hts,� or, in the sole discretion of the Authority, may be applied to
<br />o n e'dk, re principa%,p� the Loan in a manner determined by the Authority.
<br />nts. (a) The Recipient may not prepay the Loan except upon written
<br />Section Prepaym
<br />consent of i I uthority has consented, then upon 45 days' prior written notice to the
<br />Authority ( r as the Authority may accept), the Recipient may prepay the Loan and
<br />the Note, i i any February 20 or August 20 at a redemption price equal to the principal
<br />amount to I er with accrued interest and servicing fees thereon to the redemption date
<br />and o premium equal to all fees and expenses of the Authodty, if any, in connection with the
<br />prepayment, including any fees, expenses or other costs relating to the payment and redemption of the
<br />Bonds as determined by the Authority.
<br />(b)The Authority may require that the Recipient, mtits sole cost and expense, deliver tothe Authority
<br />an opinion from a law firm, selected bythe Authority, having a national reputation in the field of
<br />municipal finance law whose |oOe| opinions are generally accepted by purchasers of municipal bonds
<br />Lino Lakes—DWRF-01
<br />Page 3of 12
<br />
|