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).
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Samples: Credit Agreement (Oglethorpe Power Corp), Credit Agreement (Oglethorpe Power Corp)
Rate Covenant. Subject to any necessary regulatory approval or determination of RUS(a) The Subsidiary and the Authority hereby covenant and agree that fees, if required, the Borrower shall establish and collect rates, rents, charges, fees charges and other compensation (the “Rates”) surcharges for the use of, or the sale of outputservices furnished, capacity rendered or service of made available by, the System thatshall be established by the Authority in accordance with the Resolution and the Act such that such fees, rates, rents, charges and surcharges shall be adequate, together with any other revenues available funds, to the Borrowerprovide for, 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 reviewedamong other things, 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 the timely payment of Rates based the Principal Installments of and interest on a material change in circumstancesall Bonds, the Borrower determines that Rates are required to be established or revised in order for principal of and interest on any other Authority Obligations payable from Revenues, and the Borrower to comply with this Section 6.13 principal of and interest on the Outstanding Subsidiary Unsecured Debt, (ii) there are less than six the proper operation and maintenance of the System, (6iii) 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 all other payments required for the next fiscal year so as System not otherwise provided for and (iv) all other payments required pursuant to reasonably expect this Agreement and any System Agreements.
(b) If the periodic review of System fees, rates, rents, charges and surcharges conducted by the Authority in accordance with Section 701 of the General Bond Resolution, or the report prepared pursuant to Section 702 of the General Bond Resolution, indicates that such rates, fees, rents, charges and surcharges are, or will be, insufficient to meet the covenant for such next fiscal year, subject in the case requirements of Section 701 of the foregoing Margins for Interest requirement General Bond Resolution, the Subsidiary, in accordance with the directions, if any, of the Authority, shall promptly take and diligently pursue all necessary actions within its reasonable control to cure or avoid any necessary regulatory approval or determination, including, as and such deficiency.
(c) Except to the extent requiredrequired by law, that of RUS. The Borrower the Subsidiary will not furnish or supply or cause to be furnished or supplied any useproduct, output, capacity use or service of the System with respect to which a charge is regularly or customarily made, free of charge (or at a nominal charge) to any Personperson, firm or corporation, public or private unless and to the extent the Authority shall have determined that other adequate consideration has been or is expected to be received by the Subsidiary in connection therewith, and the Borrower Subsidiary will use commercially reasonable efforts to enforce or cause to be enforced the payment of any and all accounts amounts owing to the Borrower with respect to the use, output, capacity or service Subsidiary for use of the System. Capitalized terms used System in accordance with Section 6.7 hereof.
(d) Nothing contained in this Section 6.13 without definition Financing Agreement shall have be deemed to limit or restrict the meanings provided in the First Mortgage Indenture (as in effect as right or obligation of the date hereof)Authority or the Subsidiary to comply with any covenant relating to rates to be charged for the use of, or services provided by, the System which may be made with the holders of or parties to Authority Obligations in accordance with the Act.
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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).86 0000-0000-0000.14875-3923-5757.8
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