Terms of CAW Loans. From the date such CAW Loan is made until the first day of the first month after the Acceptance Date, MCWD and/or MCWRA (as applicable) shall pay interest monthly on the unpaid principal amount of each CAW Loan made to it at a fixed rate per annum (computed on the basis of a 360-day year of twelve 30-day months) equal to the 10 year U.S. Treasury rate plus 600 basis points Commencing with the first day of the first month after the Acceptance Date, each CAW Loan shall be repaid by amortization payments based on the above-described CAW Loan interest rate. The term for repayment of each CAW Loan shall be the shorter of either (a) a term which, based on the above-described CAW Loan interest rate, will not result in an increase (considering all outstanding CAW Loans, if any) in the annual cost of the Product Water by more than ten percent (10%) prior to adding such amortization to the cost of the Product Water or (b) the shorter of ten (10) years or the remainder of the Term. No principal payments under the CAW Loan will be due until after the Acceptance Date. After the Acceptance Date, interest and principal of the CAW Loans and shall be payable on the terms set forth herein from the proceeds of the Product Water Contract Payments. The portion of the Product Water Contract Payments to be utilized to repay the CAW Loans shall be separately identified and accounted for under the Escrow Account Agreement.
Appears in 4 contracts
Samples: Water Purchase Agreement, Water Purchase Agreement, Water Purchase Agreement
