<br /> Position 5
<br /> RUS BULLETIN 17W27 APPROVW
<br /> OMB.No.OM-0121
<br /> .LOAN RESOLUTION
<br /> '(Public Bodies)
<br /> A RESOLUTION©F THE
<br /> Board Of County CommissiOners
<br /> OV TM Mason County,Washington
<br /> AUMORIZINGAND PROVIDINGFOR TfsE INCURRENCE OF 1NDMMNESS FORTHE PURPOSE OPYROVIDINGA.
<br /> } PORTION OF TW COST OF AC
<br /> QU1RiNQ-CONSTRUCTING,ENLARGING;IIvIPROVINq AWORF.XTENDINGTrS
<br /> s.
<br /> r Beards Cove Water System
<br /> r FACaX Y TO SERVE AN AREA LA,WFU.t:d Y WI1 W ITS ILMISDIC4TION TO SERVE.
<br /> -wFEREA$ rt is necessary for the .Mason County,Washington
<br /> (herein alter called Associaf m)to raise a portion of the WA ofsuc'b undeitaldng.by issuarice.:of its bonds in the principal amount of
<br /> One Hundred and Seven Thousand,.Four Hundred&00/100 Dollars
<br /> ,pursuant to the provisions of RCW.39.46.070 .and
<br /> WHEREAS,the Association intends to obtain assistance from the United! Departmett.of Agriculture,
<br /> etein called the Government actin under the visions of the Consolidated Farm andRural Development.Act U.S.t 1921
<br /> (�► ) $ provisions (7.
<br /> et seq.)in the planning.financing,and supervision of such undertaking.and the purchas' of bonds lawfully issued,m even
<br /> thatno other acceptable purchaser for such-bonds is found by the Association:
<br /> NOW THEREFORE,in consideration of the premises the Association hereby resolves:
<br /> L .To Have prepared bn its behalf and to adopt an ordinance or resolution for the issuance'bfits bonds containing such
<br /> items and in sack forms as are required by State statutes and as are agreeable and acceptable to the Government.
<br /> �. To refinance the unpaid balance,m.whole or in part of its bonds upon the request of the Government if at any time
<br /> it shall appear to the Government that the Association is able to refinance its bonds by obtaining a loan for'such purposes
<br /> from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes.and periods
<br /> of tune as required by.section 333(c)of said Consolidated Farm and Rural Development Ad(7 U.S.C.1993(c)).
<br /> To provide for,execute,and comply with Form RD 404.-4,"Assurance Agreement,"and Form RD 400-1,"Equal
<br /> 1)pportumty Agreement,"including an"Equal Opportunity Clause,"which clause is to be incorporated int or attached
<br /> asa rider`to,each construction c.ontiaet end subcontract involving in excess of$12),000:
<br /> 4. To indemnify the Government for any payments made or losses suffered by the Government on behalf ofthe Association.
<br /> Such indemnification,shall be payable from the same source of funds pledged to pay the bonds or any othe#legal ly per-
<br /> missible source.
<br /> 5. That upon default in the pay nem of eay principal ani aceaued.merest on the bonds or.in the perforihaned of afty
<br /> coyenant or agreement contained herein or in the instruments incident to malting or insuring the loan,the Government at
<br /> its optionmay(a)declare the entire`principal amount outstanding tnd'acraued interest immediately due and
<br /> payable,(b)for the.account of the Association(payable from"the source of funds pledged to pay the bonds or any other
<br /> legally pennissiibte source),incur and pay reasonable expenses for repair,maintenance,and operation of the facility
<br /> and such other reasouable'expenses as:may be necessary to cure the cause of default,and/or(c)take possession of the
<br /> facility,repair,maintain,and operate or rent it Default under the provisions of this resolution or any instrument incident to
<br /> tbe iiieki.%or insuring of the loan may be construed by the G9yeinment't(r`ciinstitute default under arty other instrument
<br /> held by the Government and executed or assumed by the Association,and default under any such instrument may be
<br /> construed by the Government to constitute default hereunder.
<br /> 6. Not.to sell,transfer,lease,or otherwise encumber the facility or any portion thereot or.intenest therein,or permit others
<br /> to do so,without the prior written.consent of the Government.
<br /> 7, Not to defeat the bonds,or 0 borrow money,enter into wwcontractor agl.ra=ef, otherwise ih*anyliabifities
<br /> for any purpose:inconuection with the facility(exclusive of normal maintenance)without.the_pnor written ebosent of the:
<br /> Government if such rmdeitalang would involve the source of fiords pledged to pay:tbe bonds.
<br /> 2. To place the proceeds of the bonds on deposit'in an account and in amanner approved by the Govetnment Funds may be
<br /> deposited in institutions insured by the State or Federal Goyemmeut or invested in readily marlaetable securities backed
<br /> by the.full faith and credit of the United States.Any income.fromi these.aecounts will be considered as revenues of the system
<br /> 9- To comply with all applicable State and Federal laws and ttguiations and W continually operate and maintain the facility
<br /> is good condition.
<br /> 10. To provide for the receipt of adequate revenues to meet the requirements of debt"service,operation and maintenance,and
<br /> the establishment of adequate reserves.Revenue accumulated quer and.above that needed to pay.operating and mairite
<br /> nance,:debt service and reserves inayonly be retained or used to make prepayments our the loan.Revenue cannot be used
<br /> to pay any expegses which are hot directly incurred for the facility financed by USDA.No free:service or ase of the
<br /> #`acuity will be permitted.
<br /> Accorrltirg to pu Pg perwoj*Peduc11v#4..q oj1995,an'ageneynttry not rondud oisponsor and a porimi la hol teyun td to respond M.a coNecrion ojinjosmatioa unless
<br /> Ir displays a wlld bAb ronlro!number.The valldOMB control number for this lnformallm eollecdon Is 0391-0121.rhe Mine required to complete this Wormadon
<br /> collection is estimated to average 7 hour per response,including rhe time for revleiring lwlruafmu,searching azTstirig data sours gathering and malMain(ng the
<br /> d2r6 neede4 and coinpkritig"and reiNawing the collection oftnformadon.