Common use of Additional Contracts and Bonds Clause in Contracts

Additional Contracts and Bonds. The District may at any time execute any Contract or issue any Bonds, as the case may be, in accordance herewith; provided that: (a) The Net Revenues for the last audited Fiscal Year of the District, or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Municipal Consultant on file with the District, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such Fiscal Year or other twelve month period; and (b) The Net Revenues for the last audited Fiscal Year of the District, or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, including adjustments to give effect as of the first day of such Fiscal Year or other twelve month period, to increases or decreases in rates and charges with respect, or applicable, to the System approved and in effect as of the date of calculation, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Municipal Consultant on file with the District, shall have produced a sum equal to at least [one hundred twenty percent (120%) of the Debt Service] for such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued on any Contracts executed or Bonds issued since the end of such Fiscal Year or other twelve month period, assuming that such Contracts had been executed or Bonds had been issued at the beginning of such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued had such proposed additional Contract been executed or proposed additional Bonds been issued at the beginning of such Fiscal Year or other twelve month period. [For purposes of this Section 5.03, the amount of Net Revenues may be increased (in an amount not exceeding 20% of Debt Service payable in the applicable Fiscal Year) by the amount of the Unencumbered Fund Balance as of the last day of the immediately preceding Fiscal Year.] Notwithstanding the foregoing, Bonds issued or Contracts executed to refund Bonds or prepay Contracts may be delivered without satisfying the conditions set forth above if Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than 105% of the Debt Service which would have been payable in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts.

Additional Contracts and Bonds. The District Agency may at any time execute any Contract or issue any Bonds, as the case may be, in accordance herewith; provided thatprovided: (a) The Net Revenues (not including amounts transferred from the Rate Stabilization Fund pursuant to Section 5.5 to the Revenue Fund in excess of twenty percent (20%) of Debt Service for such Fiscal Year) for the last most recent audited Fiscal Year of the District, or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District Agency of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, as evidenced by both a calculation prepared by the Agency and a special report prepared by an Independent Certified Public Accountant or an Independent Municipal Consultant Advisor on such calculation on file with the DistrictAgency, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such Fiscal Year or other twelve month periodYear; and (b) The Net Revenues (not including amounts transferred from the Rate Stabilization Fund pursuant to Section 5.5 in excess of twenty percent (20%) of Debt Service for such Fiscal Year) for the last most recent audited Fiscal Year preceding the date of the District, execution of such Contract or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District Agency of the resolution authorizing the issuance of such Bonds or the date of the execution of such ContractBonds, as the case may be, including adjustments to give effect as of the first day of such Fiscal Year or other twelve month period, to increases or decreases in income, rents, fees, rates and charges with respect, or applicable, to for the System Water Service approved and in effect as of the date of calculation, as evidenced by both a calculation prepared by the Agency and a special report prepared by an Independent Certified Public Accountant or an Independent Municipal Consultant Advisor on such calculation on file with the DistrictAgency, shall have produced demonstrate a sum equal to at least [one hundred twenty percent (120%) of the Debt Service] Service for such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued on any Contracts executed or Bonds issued since the end of such Fiscal Year or other twelve month period, assuming that such Contracts had been executed or Bonds had been issued at the beginning of such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued had such proposed additional Contract been executed or proposed additional Bonds been issued at the beginning of such Fiscal Year or other twelve month period. [For purposes of this Section 5.03, the amount of Year; and (c) The estimated Net Revenues may be increased (not including amounts transferred from the Rate Stabilization Fund pursuant to Section 5.5 in an amount not exceeding excess of twenty percent (20% %) of Debt Service payable in the applicable for such Fiscal Year) for the then current Fiscal Year and for each Fiscal Year thereafter to and including the first complete Fiscal Year after the latest date of operation of any uncompleted Parity Project financed from proceeds of such Contract or Bonds, as evidenced by a certificate on file with the amount Agency, including (after giving effect to the completion of all such uncompleted Parity Projects) an allowance for estimated Net Revenues (not including amounts transferred from the Rate Stabilization Fund pursuant to Section 5.5 in excess of twenty percent (20%) of Debt Service for such Fiscal Year) for each of such Fiscal Years arising from any increase in the income, rents, fees, rates and charges estimated to be fixed and prescribed for the Water Service and which are economically feasible and reasonably considered necessary based on projected operations for such period, as evidenced by a certificate of the Unencumbered Fund Balance as Manager on file with the Agency, shall produce a sum equal to at least one hundred twenty percent (120%) of the estimated Debt Service for each of such Fiscal Years, after giving effect to the execution of all Contracts and the issuance of all Bonds estimated to be required to be executed or issued to pay the costs of completing all uncompleted Parity Projects within such Fiscal Years, assuming that all such Contracts and Bonds have maturities, interest rates and proportionate principal repayment provisions similar to the Contract last day executed or then being executed or the Bonds last issued or then being issued for the purpose of the immediately preceding Fiscal Year.] acquiring and constructing any of such uncompleted Parity Projects. Notwithstanding the foregoing, Bonds issued or Contracts executed to refund Bonds or prepay Contracts may be delivered without satisfying the conditions set forth above if Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than 105% of the Debt Service which would have been payable in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts. Notwithstanding satisfaction of the other conditions to the execution of any Contract or the issuance of Bonds set forth in this Section 5.3, no such execution or issuance may occur if an Event of Default (or any event which, once all notice or grace periods have passed, would constitute an Event of Default) exists unless such Event of Default shall be cured upon such execution or issuance.

Additional Contracts and Bonds. The District Agency may at any time execute any Contract or issue any Bonds, as the case may be, in accordance herewith; provided thatprovided: (a) The Net Revenues for the last most recent audited Fiscal Year of the District, or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District Agency of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, as evidenced by both a calculation prepared by the Agency and a special report prepared by an Independent Certified Public Accountant or an Independent Municipal Consultant Advisor on such calculation on file with the DistrictAgency, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such Fiscal Year or other twelve month periodYear; and (b) The Net Revenues for the last most recent audited Fiscal Year preceding the date of the District, execution of such Contract or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District Agency of the resolution authorizing the issuance of such Bonds or the date of the execution of such ContractBonds, as the case may be, including adjustments to give effect as of the first day of such Fiscal Year or other twelve month period, to increases or decreases in income, rents, fees, rates and charges with respect, or applicable, to for the System Water Service approved and in effect as of the date of calculation, as evidenced by both a calculation prepared by the Agency and a special report prepared by an Independent Certified Public Accountant or an Independent Municipal Consultant Advisor on such calculation on file with the DistrictAgency, shall have produced demonstrate a sum equal to at least [one hundred twenty percent (120%) of the Debt Service] Service for such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued on any Contracts executed or Bonds issued since the end of such Fiscal Year or other twelve month period, assuming that such Contracts had been executed or Bonds had been issued at the beginning of such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued had such proposed additional Contract been executed or proposed additional Bonds been issued at the beginning of such Fiscal Year or other twelve month period. [For purposes of this Section 5.03, the amount of Year; and (c) The estimated Net Revenues may for the then current Fiscal Year and for each Fiscal Year thereafter to and including the first complete Fiscal Year after the latest date of operation of any uncompleted Parity Project financed from proceeds of such Contract or Bonds, as evidenced by a certificate on file with the Agency, including (after giving effect to the completion of all such uncompleted Parity Projects) an allowance for estimated Net Revenues for each of such Fiscal Years arising from any increase in the income, rents, fees, rates and charges estimated to be increased fixed and prescribed for the Water Service and which are economically feasible and reasonably considered necessary based on projected operations for such period, as evidenced by a certificate of the Manager on file with the Agency, shall produce a sum equal to at least one hundred twenty percent (in an amount not exceeding 20% 120%) of the estimated Debt Service payable in for each of such Fiscal Years, after giving effect to the applicable execution of all Contracts and the issuance of all Bonds estimated to be required to be executed or issued to pay the costs of completing all uncompleted Parity Projects within such Fiscal Year) by Years, assuming that all such Contracts and Bonds have maturities, interest rates and proportionate principal repayment provisions similar to the amount Contract last executed or then being executed or the Bonds last issued or then being issued for the purpose of the Unencumbered Fund Balance as acquiring and constructing any of the last day of the immediately preceding Fiscal Year.] such uncompleted Parity Projects. Notwithstanding the foregoing, : (i) Bonds issued or Contracts executed to refund Bonds or prepay Contracts may be delivered without satisfying the conditions set forth above if Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than 105% of the Debt Service which would have been payable in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts; and (ii) Bonds issued or Contracts executed to refund Senior Obligations may be delivered without satisfying the conditions set forth above if total Debt Service and Senior Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than 105% of total Debt Service and Senior Debt Service which would have been payable in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts. Notwithstanding satisfaction of the other conditions to the execution of any Contract or the issuance of Bonds set forth in this Section 5.3, no such execution or issuance may occur if an Event of Default (or any event which, once all notice or grace periods have passed, would constitute an Event of Default) exists unless such Event of Default shall be cured upon such execution or issuance.

Additional Contracts and Bonds. The District may at any time execute any Contract or issue any Bonds, as the case may be, payable from Gross Revenues on a parity with the Xxxx SRF Payments, the Morro SRF Payments, the 2018 Installment Payments, the 2018 Lease Payments and the Series 2022 Installment Payments in accordance herewith; provided thatthere shall be on file with the District either: (a) The Net Revenues for District is not then in default under the last audited Fiscal Year terms of the District, or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors of the District of the resolution authorizing the issuance of such Bonds or the date of the execution of such this Installment Purchase Contract, as the case may be, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Municipal Consultant on file with the District, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such Fiscal Year or other twelve month period; and (b) The Either (i) the Net Revenues Revenues, calculated in accordance with Generally Accepted Accounting Principles, as shown by the books of the District for the last audited latest Fiscal Year for which audited financial information is available or as shown by the books of the District for any more recent 12-month period selected by the District in its sole discretion, in either case verified by a certificate or opinion of an independent certified public accountant acceptable to the Purchaser in its sole discretion, plus, at the option of the District, any or for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the Board of Directors all of the District items described in the following subsection (c), at least equal 120% of the resolution authorizing the issuance amount of such Bonds or the date of the execution of such Contract, as the case may be, including adjustments to give effect as of the first day of such Fiscal Year or other twelve month period, to increases or decreases in rates and charges with respect, or applicable, to the System approved and in effect as of the date of calculation, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Municipal Consultant on file with the District, shall have produced a sum equal to at least [one hundred twenty percent (120%) of the Maximum Annual Debt Service] for such Fiscal Year ; or other twelve month period, plus the Debt Service which would have accrued on any Contracts executed or Bonds issued since the end of such Fiscal Year or other twelve month period, assuming that such Contracts had been executed or Bonds had been issued at the beginning of such Fiscal Year or other twelve month period, plus the Debt Service which would have accrued had such proposed additional Contract been executed or proposed additional Bonds been issued at the beginning of such Fiscal Year or other twelve month period. [For . (ii) the average annual Net Revenues for the prior 36-month period, calculated in accordance with Generally Accepted Accounting Principles, as shown by the books of the District for the three prior Fiscal Years for which audited financial information is available or as shown by the books of the District for any more recent 36-month period selected by the District in its sole discretion, verified by a certificate or opinion of an independent certified public accountant acceptable to the Purchaser in its sole discretion, plus, at the option of the District, any or all of the items described in the following subsection (c), at least equal 120% of the amountof Maximum Annual Debt Service; (c) At the option of the District, there may be added to the Net Revenues for purposes of this Section 5.03, meeting the amount requirements of the foregoing subsection (b) an allowance for Net Revenues may arising from either of the following: (i) An allowance for Net Revenues from any improvements to the Water System to be increased made with the proceeds of such Bonds and Contracts and also for Net Revenues from any such improvements which have been made from moneys from any source but in any case which, during all or any part of the period described in the foregoing subsection (b), were not in service, all in an amount not exceeding 20equal to 90% of Debt Service payable the estimated additional average annual Net Revenues to be derived from such improvements for the first 36 month period in which each improvement is respectively to be in operation, all as shown by the certificate or opinion of a qualified independent engineer acceptable to the Purchaser in its sole discretion. (ii) An allowance for Net Revenues arising from any increase in the applicable Fiscal Year) charges made for service from the Water System which has been adopted prior to the incurring of such Bonds and Contracts but which, during all or any part of the period described in the foregoing subsection (b), was not in effect, in an amount equal to the total amount by which the Net Revenues would have been increased if such increase in charges had been in effect during the whole of such period, all as shown by the amount certificate or opinion of an independent certified public accountant acceptable to the Unencumbered Fund Balance as of the last day of the immediately preceding Fiscal Year.] Purchaser in its sole discretion. [Notwithstanding the foregoing, Bonds issued or Contracts executed to refund Bonds or prepay Contracts may be delivered without satisfying the conditions set forth above if Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than 105% of the Debt Service which would have been payable in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts.] Furthermore, notwithstanding the foregoing, the District may, with the prior written consent of the Purchaser, issue evidence of indebtedness or incur other obligations for any lawful purpose that are payable from and secured by a lien on Gross Revenues or money in the Revenue Fund as may from time to time be deposited therein subordinate to the Series 2022 Installment Payments.