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Section 5.3.1 Issuance of Bonds. An Authorized Issuer may issue Bonds payable from and
<br />secured solely by all or a portion of Net Cascade Revenue, evidencing indebtedness up to an amount
<br />approved by Resolution for the Board in order to provide financing or refinancing to acquire, construct,
<br />receive, own, manage, lease or sell real property, personal property, intangible property and other Water
<br />Supply Assets, to establish debt service reserves, to provide for capitalized interest and to pay the costs of
<br />issuance of, and other costs related to the issuance of the Bonds. Such Bonds shall be payable solely from
<br />all or a portion of the Net Cascade Revenue or (if the Authorized Issuer is other than Cascade) from
<br />payments to be made by Cascade out of all or a portion of Net Cascade Revenue, and such Bonds shall
<br />not pledge the full faith and credit or taxing power or, except as expressly provided by contract, the
<br />revenue, assets or funds of any Member.
<br />Members serving as Authorized Issuers may conduct the financing through "separate systems"
<br />permitted by their applicable bond resolutions, or in some other appropriate manner, and Cascade may
<br />compensate those Members for all costs associated with the financing. Bond - related documents of
<br />Authorized Issuers other than Cascade must expressly permit the Bonds to be refunded or prepaid without
<br />penalty prior to their stated maturity, on and after such dates as are approved by the Authorized Issuer and
<br />the Board, to allow for a transfer of the obligation to Cascade or to Cascade's successor entity, including
<br />without limitation, a joint operating agency or similar entity, as may be permitted by law.
<br />Section 5.3.2 Pledge of Revenues. For as long as any Bonds payable from Net Cascade
<br />Revenue (or any portion thereof) are outstanding, Cascade irrevocably pledges to establish, maintain and
<br />collect all Member Charges in amounts sufficient to pay when due the principal of and interest on the
<br />Bonds (and, if the Authorized Issuer is other than Cascade, in addition to the foregoing pledge, to pledge
<br />to make timely payments to that Authorized Issuer for the payment of principal of and interest on the
<br />Bonds), together with amounts sufficient to satisfy all debt service reserve requirements, debt service
<br />coverage requirements, and other covenants with respect to the Bonds.
<br />Each Member hereby irrevocably covenants that it shall establish, maintain and collect rates, fees
<br />or other charges for water and other services, facilities and commodities related to the water supply it
<br />receives from Cascade and/or its water utility at levels adequate to provide revenues sufficient to enable
<br />the Member to: (a) make the payment required to be made under this Agreement; and (b) pay or provide
<br />for payment of all other charges and obligations payable from or constituting a charge or lien upon such
<br />revenues. Each Member hereby acknowledges that this covenant and its covenant in Section 7.9 of this
<br />Agreement may be relied upon by Bond owners, consistent with this Agreement.
<br />Each Member shall pay the Member Charges imposed on it whether or not the Water Supply
<br />Assets to be financed through the issuance of Bonds are completed, operable or operating, and
<br />notwithstanding the suspension, interruption, interference, reduction or curtailment in the operation of any
<br />Water Supply Assets for any reason whatsoever, in whole or in part. Member Charges shall not be
<br />subject to any reduction, whether by offset or otherwise, and shall not be conditioned upon the
<br />performance or nonperformance of any Member, or of any entity under this or any other agreement or
<br />instrument. However, credits against future RCFCs and Rates and Charges described in Sections 5.5 and
<br />7.5, respectively, for development or addition of excess capacity that is either transferred to Cascade or
<br />Joint Municipal Utility Services Agreement 13 March 28, 2012
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