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6.03 Loan Forgiveness Provisions. The Council will review the Certification(and other <br /> documentation as required by Section 6.02), submitted by Lendee prior to each Annual <br /> Installment Date, to determine its adequacy. The Council may request, and the Lendee will <br /> provide, additional information or documentation in order to carry out such review. <br /> a. Positive Determination. If, in the Council's sole discretion, it determines that the <br /> Loan Project continues to be successful,that is, that the inflow and infiltration removed pursuant <br /> to the Loan Project have not returned to the system in significant quantities during the twelve <br /> month period prior to the said Certification, then the Council may forgive the Lendee's loan <br /> installment principal payment, along with accrued interest on the forgiven principal, for that <br /> Annual Installment Date. The Council will promptly notify Lendee if it qualifies for such loan <br /> forgiveness. <br /> b. Negative Determination. If, in the Council's sole discretion, it determines that the <br /> Loan Project does not continue to be successful, that is, that the inflow and infiltration removed <br /> pursuant to the Loan Project have returned to the system in significant quantities during the <br /> twelve month period prior to the said Certification, then the Council will notify the Lendee that <br /> the installment payment, along with accrued interest, for that Annual Installment Date will not be <br /> forgiven and is due and owing in accordance with the schedule set forth in section 3.04. In such <br /> • case,Lendee will have the following options: <br /> 1. Lendee may make a request, in writing,to the Council for an extension period <br /> of up to three months from the Annual Installment Date, for payment of the <br /> installment payment, for the purpose of carrying out additional work at its own <br /> expense in order to satisfy the Council's requirements. If at the end of such <br /> extension period the Council determines that such work does satisfy its <br /> requirements, it will notify the Lendee of that fact and that the installment principal <br /> payment, along with any accrued interest on the forgiven principal, for said Annual <br /> Installment Date is forgiven. If at the end of such extension period the Council <br /> determines that such work does not satisfy its requirements, it will notify the <br /> Lendee of that fact and the installment principal payment, along with accrued <br /> interest (including interest for the extension period), for the said Annual <br /> Installment Date will become due and owing upon receipt of said notice. <br /> 2. Alternatively,Lendee may determine that it does not desire to pursue additional <br /> work because such work would not be productive or otherwise not in Lendee's <br /> interest. In such case, Lendee will make the installment payment, along with <br /> accrued interest, on the said Annual Installment Date, and will thereafter repay the <br /> Loan in accordance with the schedule set forth in Section 3.04. <br /> If a Loan Project fails to obtain loan forgiveness for any period in accordance with this section, all <br /> • future installment payments will be made in accordance with Section 3.04 and Lendee will not be <br /> eligible for any future loan forgiveness. <br />