Rate Covenant. Purchaser will establish, maintain and collect rates and charges for the electric service of its electric system each year so as to provide revenues sufficient, together with any legally available electric system reserves, to enable Purchaser to pay to SCPPA all amounts payable when due under this Agreement and to pay all other amounts payable from, and all lawful charges against or liens on, the revenues of its electric system.
Rate Covenant. The Municipality, in accordance with and subject to applicable law, shall fix, establish, maintain and collect such rates and charges for the use and services furnished by or through the Utility as will produce Gross Revenues sufficient to: (A) pay the Current Expenses; (B) pay the Debt Service Requirements on the Utility Indebtedness as and when the same become due at the Maturity thereof or on any interest payment date; (C) provide reasonable and adequate reserves for the payment of the Utility Indebtedness and for the protection and benefit of the Utility as provided in the Bond Resolutions; and (D) enable the Municipality to have in each Municipal Fiscal Year, a Debt Service Coverage Ratio of not less than (1) 1.20 on all Parity Indebtedness at the time Outstanding; (2) 1.00 on all Subordinate Indebtedness at the time Outstanding; (3) 1.00 on all General Obligation Indebtedness at the time Outstanding; and (4)
1. 00 with respect to the Payment to the City; provided that, in determining the Net Revenues for purposes of the calculation of the Debt Service Coverage Ratio, estimated additional net income to be derived from rate increases in effect and being charged prior to the end of the applicable Municipal Fiscal Year, as determined by the Consultant, may be taken into account, and that, without giving effect to any such adjustments from rate increases, the Debt Service Coverage Ratio shall be not less than 1.00 of the current Municipal Fiscal Year’s Debt Service Requirements for all Utility Indebtedness. The Municipality shall, from time to time as often as necessary, in accordance with and subject to applicable law, revise the rates and charges aforesaid in such manner as may be necessary or proper so that the Net Revenues will be sufficient to cover the obligations under the provisions of the Bond Resolutions. If in any Municipal Fiscal Year, Net Revenues are an amount less than as provided in the foregoing provisions of this section, the Municipality will make adjustments to such rates, fees and charges to bring the Utility into compliance with this covenant. It shall be the policy of the Municipality that the rates, fees and charges established for the Water Utility and the Sewer Utility shall each be sufficient to provide Net Revenues with respect to Utility Indebtedness issued for improvements to each such component of the Utility which meet the coverage requirements set forth herein to the extent reasonably practical.
Rate Covenant. The Borrower shall ensure that in each fiscal year its Net Revenues Available for Debt Service equal at least 110% of System Debt Service for such fiscal year, and shall as soon as practicable, and in any event by the date it is required to deliver unaudited financial statements to the District pursuant to Section 2.2(f), (a) calculate its Net Revenues Available for Debt Service and System Debt Service for such fiscal year and the coverage ratio, and (b) certify such figures to the District. The certification described in clause (b) of the preceding sentence shall be substantially in the form of the certificate attached hereto as Appendix E to this Loan Agreement. If the percentage specified in clause (3) of the certificate required by the preceding sentence is less than 110%, then the Borrower shall provide such further certifications as the District shall reasonably require to determine the Borrower’s compliance with the requirements of this Loan Agreement. Failure to meet the coverage test is not an Event of Default if (a) the coverage is at least 100%, and (b) the Borrower, within 30 days of its certification to the District, retains a Consultant to make recommendations in a report to be delivered to the Borrower within 60 days of his being retained as to the actions required in order to achieve compliance and, upon receipt of the report, takes the actions which are recommended (except to the extent it receives the written consent of the District to not take any such actions). The Borrower shall supply the District with quarterly reports on the actions it is taking to correct its coverage deficiency until it delivers an annual coverage certificate showing compliance with the first sentence of this Section. Notwithstanding anything provided to the contrary in the preceding paragraph, if the Borrower has issued System Revenue Debt to finance the construction of expansions to the System (the “Expansion Debt”) and construction was not complete prior to the beginning of a fiscal year, the coverage ratio called for in the previous paragraph shall be 110% with respect to all System Revenue Debt, except the Expansion Debt, and 100% for such Expansion Debt. Any capitalized interest funded from the proceeds of such Expansion Debt or other sources shall be counted as Net Revenues Available for Debt Service in the period for which such capitalized interest is to be applied to pay interest on the Expansion Debt.
Rate Covenant. The Borrower/Grantee covenants that it will at all times fix, charge and collect such rates and charges as shall be required in order that in each Fiscal Year in which the Loan is outstanding the Gross Revenues shall at least equal the Operation and Maintenance Expenses of the System for the Fiscal year, plus one hundred percent (100%) of the maximum annual principal and interest payments due on all outstanding obligations payable from the Pledged Revenues.
Rate Covenant. The Company shall establish and collect rates, rents, charges, fees and other compensation (collectively "Rates")
(i) for the use or the sale of the output, capacity or service of the System which are reasonably expected to yield Margins for Interest for each fiscal year of the Company, equal to at least 1.10 times Interest Charges for such period, subject to the approval or determination of any regulatory or judicial authority with jurisdiction over Rates, and (ii) that, together with other moneys available to the Company, produce moneys sufficient to enable the Company to comply with its covenants under this Indenture. Promptly upon any material change in the circumstances which were contemplated at the time such Rates were most recently reviewed, but not less frequently than once every twelve (12) months, the Company shall review the Rates so established and shall, subject in the case of the Margins for Interest requirement in clause (i) to any necessary regulatory or judicial approval or determination, promptly establish or revise such Rates as necessary to comply with the foregoing requirements.
Rate Covenant. Following any
Rate Covenant. The City shall, subject to applicable law, at all times establish, fix, prescribe and collect rentals, rates, fees and charges in connection with the services and facilities furnished by the Enterprise so as to yield Net General Airport Revenues sufficient to comply with Section 7.9 hereof.
Rate Covenant. Subject to any necessary regulatory approval or determination of RUS, if required, the Borrower shall establish and collect rates, rents, charges, fees and other compensation (the “Rates”) for the use or the sale of output, capacity or service of the System that, together with other revenues available to the Borrower, are reasonably expected to yield Margins for Interest for each fiscal year of the Borrower equal to at least 1.10 times Interest Charges for such period. Promptly upon any material change in the circumstances which were contemplated at such time Rates were most recently reviewed, but not less frequently than once every twelve (12) months, the Borrower shall review the Rates so established and shall promptly establish or revise such Rates, as necessary to comply with the foregoing requirements; provided, however, that if (i) upon any such review of Rates based on a material change in circumstances, the Borrower determines that Rates are required to be established or revised in order for the Borrower to comply with this Section 6.13 and (ii) there are less than six (6) calendar months remaining in the current fiscal year, it will be sufficient for purposes of complying with this Section 6.13 if the Borrower establishes or revises its Rates for the next fiscal year so as to reasonably expect to meet the covenant for such next fiscal year, subject in the case of the foregoing Margins for Interest requirement to any necessary regulatory approval or determination, including, as and to the extent required, that of RUS. The Borrower will not furnish or supply or cause to be furnished or supplied any use, output, capacity or service of the System with respect to which a charge is regularly or customarily made, free of charge to any Person, and the Borrower will use commercially reasonable efforts to enforce the payment of any and all accounts owing to the Borrower with respect to the use, output, capacity or service of the System. Capitalized terms used in this Section 6.13 without definition shall have the meanings provided in the First Mortgage Indenture (as in effect as of the date hereof).
Rate Covenant. The Governmental Agency shall establish and collect such rates, fees, and charges for the use or the sale of the products and services of the System as, together with other moneys available therefor, are expected to produce Gross Revenue (as defined in Paragraph (3) of Exhibit A to this Loan Agreement) for each calendar year that will be at least sufficient for such calendar year to pay the sum of:
(a) all amounts estimated to be required to pay Operation and Maintenance Expenses (as defined in Paragraph (3) of Exhibit A of this Loan Agreement) during such calendar year;
(b) a sum equal to 110% of the debt service due on the Governmental Agency Bond for such calendar year and debt service coming due during such calendar year on any obligations secured by a lien on the Pledged Property which lien is on a parity with the lien of this Loan Agreement on the Pledged Property, in each case computed as of the beginning of such calendar year;
(c) the amount, if any, to be paid during such calendar year into any debt service reserve account in connection with any obligations secured by a lien on the Pledged Property which lien is on a parity with the lien of this Loan Agreement on the Pledged Property;
(d) a sum equal to the debt service on any obligations secured by a lien on the Pledged Property which lien is subordinate to the lien of this Loan Agreement on the Pledged Property for such calendar year computed as of the beginning of such calendar year; and
(e) amounts necessary to pay and discharge all charges and liens or other indebtedness not described above payable out of the Gross Revenue during such calendar year.
Rate Covenant. Rates and charges for natural gas and all other services or facilities furnished or supplied by IGU shall be set to generate annual net revenues sufficient to maintain a Debt Service Coverage Ratio of not less than 1.0 to 1.0 for Investment Grade municipal utility financing on the Bonds and the Other Bonds, plus the amount, if any, required to be deposited in any operating, debt service, capital, or other reserves.