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PROMISSORY NOTE
WASTEWATER FACILITY LOAN ACCOUNT
This Promissory Note is executed in conformance with and pursuant to the Drinking Water Facility Loan Contract entered
into between the City of McCall and the State of Idaho, Department of Environmental Quality, (herein called the "State") which is attached as Appendix A; the Record of Disbursements
prepared by the State dated April 1, 2004, which is attached as Appendix B and the Judicial Confirmation Findings of Fact which is attached as Appendix C. Appendices A, B and C are
hereby incorporated by reference.
For value received, the City of McCall (herein called the "Borrower") promises to pay to the State the principal amount of five million nine hundred
eight thousand seven hundred fifty-five dollars and eleven cents ($5,908,755.11), plus interest on the unpaid balance at the rate of two percent (2.0%) per annum. The principal and interest
of this note shall be repaid in accordance with the Loan Repayment Schedule, which is attached as Appendix D and hereby incorporated by reference.
In addition, the Borrower pledges
revenue and income of the Borrower's drinking water facility, whether collected or uncollected, in an amount sufficient to repay all principal and interest and pledges to establish and
maintain a reserve account. The reserve account must total $359,909.34 at the end of five years with at least 20% of that amount being deposited annually.
Every payment made on any
indebtedness evidenced by this note shall be applied first to interest computed to the effective date of the payment and then to principal. Prepayments of scheduled installments, or
any portion thereof, may be made only with prior written permission of the State. Refunds and extra payments, after payment of interest, will be applied to the installments last to
become due under this note and shall not affect the obligation of the Borrower to pay the remaining installments as scheduled herein.
If the State at any time assigns this note and
insures the payment thereof, the Borrower shall continue to make payments to the State as collection agent for the holder. No assignment of this note shall be effective unless the Borrower
is notified in writing of the name and address of the assignee. The Borrower shall thereupon duly note in its records the occurrence of such assignment, together with the name and address
of the assignee.
Any amount advanced or expended by the State for the collection hereof or to preserve or protect any security hereto, or otherwise under the terms of any security or
other instrument executed in connection with the loan evidenced hereby, at the option of the State shall become a part of and bear interest at the same rate as the principal of the debt
evidenced hereby and be immediately due and payable by Borrower to the State without demand.
This note is given as evidence of a loan to Borrower made or insured by the State pursuant
to Title 39, Chapter 79, Idaho Code. This note shall be subject to the present regulations of the State and to its future regulations not inconsistent with the express provisions hereof.
This note shall be subordinate to the City of McCall’s Water Revenue Refunding Bonds, Series 2003 but any future debt on the City of McCall’s drinking water system must grant parity
with this note.
Presentment, protest and notice are hereby waived.
Payments shall be sent to:
Idaho Department of Environmental Quality
1410 North Hilton
Boise, Idaho 83706-1253
Execution of this
agreement must be accompanied by a written resolution of the Borrower's governing body authorizing the signator to sign on Borrower's behalf for the purpose of this agreement.
Dated
April 15, 2004.
(SEAL) CITY OF MCCALL
Valley County, Idaho
By__________________________________
Mayor
ATTEST: 216 E. Park Street
______________________________
_ McCall, Idaho 83638
Deputy City Clerk