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HomeMy WebLinkAboutOrder 036 - Grant Signature Authority��ES L' �� Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of 10:00 a.m., Monday, June 1, 2009 Please see directions, for completing this document on the next page. DATE: May 28, 2009 FROM: Tom Anderson CDD Phone #1704 TITLE OF AGENDA ITEM: Consideration of Board Signature of Order No. 2009 -036 Authorizing County Administrator Signature of Document 2009 -290, Loan Agreement with Oregon Department of Environmental Quality. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The Board agreed to apply for a loan from the Oregon Department of Environmental Quality for $40,000 in order to provide that money as a grant to Sunriver Environmental LLC for a study of the feasibility of expanding the SELLC sewer system to specific areas south of Sunriver. Attached is Document 2009 -290, the DEQ Loan Agreement. That agreement requires that the Board issue an order authorizing the execution and delivery of the loan agreement. Order No. 2009 -036 authorizes the County Administrator to sign the loan agreement. FISCAL IMPLICATIONS: The order itself does not have an impact. The loan encumbers Deschutes County Fund 296, the CDD Groundwater Partnership Fund, and any revenues resulting from the sale of the County property in the New Neighborhood until the loan is repaid. Additionally, the County must maintain a reserve account in the amount of $4,157 until the loan is repaid. RECOMMENDATION & ACTION REQUESTED: Approve and sign Order 2009 -036. ATTENDANCE: Tom Anderson and Laurie Craghead DISTRIBUTION OF DOCUMENTS: A certified true copy of the order to Tom Anderson. REVIEWED LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Authorizing County Administrator Signature of Document 2009 -290, Loan Agreement with Oregon Department of Environmental Quality * * * ORDER NO. 2009 -036 WHEREAS, in order to aid Deschutes County in its efforts to protect the groundwater in South Deschutes County, the Board of County Commissioners ( "Board ") intends to issue a grant to Sunriver Environmental, LLC ( "SELLC ") for purposes of conducting a sewer expansion feasibility study for certain areas south of the Sunriver Urban Unincorporated Community; and WHEREAS, the County needs additional funding from other governmental sources in order to provide the grant to SELLC; and WHEREAS, the Oregon Department of Environmental Quality ( "DEQ ") has agreed to loan Deschutes County $40,000 for purposes of the feasibility study; and WHEREAS, Document 2009 -290, attached and incorporated by reference herein, is the loan agreement from DEQ that requires an order, resolution or ordinance by the Board authorizing the execution of the agreement; and WHEREAS, ORS 190.110 authorizes intergovernmental agreements between a state agency and a unit of local government; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDERS as follows: /// PAGE 1 OF 2- ORDER No. 2009 -039 (06/01/09) Section 1. The Deschutes County Administrator is authorize to execute and deliver to DEQ Document 2009 -290. DATED this day of , 2009. BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON TAMMY BANEY, Chair ATTEST: DENNIS R. LUKE, Vice Chair Recording Secretary ALAN UNGER, Commissioner PAGE 2 OF 2- ORDER NO. 2009-039 (06/01/09) REVIEWED L ` L COUNSEL CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT No. R27611 BETWEEN THE STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY AND DESCHUTES COUNTY OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 2 ARTICLE 1: ARTICLE 2: ARTICLE 3: ARTICLE 4: ARTICLE 5: ARTICLE 6: ARTICLE 7: ARTICLE 8: ARTICLE 9: TABLE OF CONTENTS THE LOAN - SPECIFIC TERMS 3 GENERAL LOAN PROVISIONS 4 GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS 6 CONDITIONS TO LOAN 8 COVENANTS OF BORROWER 9 DISCLAIMERS BY DEQ; LIMITATIONS ON DEQ's LIABILITY 13 DEFAULT AND REMEDIES 14 DEFINITIONS 16 MISCELLANEOUS 17 APPENDIX A: REPAYMENT SCHEDULE 21 APPENDIX B: ESTIMATED CWSRF LOAN DISBURSEMENT SCHEDULE 22 APPENDIX C: APPLICABLE FEDERAL AUTHORITIES AND LAWS ( "CROSS- CUTTERS ") 23 DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREE MENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 3 THIS LOAN AGREEMENT is made and entered into as of the date it is fully executed by both parties (and in the case of the State, approved by the Attorney General's Office, if required) and is by and between the State of Oregon, acting by and through its Department of Environmental Quality ( "DEQ "), and the Borrower (as defined below). Unless the context requires otherwise, capitalized terms not defined below shall have the meanings assigned to them by ARTICLE 8 of this Loan Agreement. The reference number for the Loan made pursuant to this Loan Agreement is Loan No. R27611. DEQ agrees to make, and Borrower agrees to accept, the Loan on the terms and subject to the conditions set forth below. ARTICLE 1: THE LOAN - SPECIFIC TERMS DEQ agrees to make the Loan on the following terms and conditions: (A) BORROWER: Deschutes County. (B) BORROWER'S ADDRESS: Deschutes County 117 NW Lafayette Avenue Bend, Oregon 97701 Fax 541 -385 -1764 (C) LOAN AMOUNT: $40,000. (D) TYPE AND PURPOSE OF LOAN. The Loan is a "Revenue Secured Loan" made by DEQ pursuant to OAR Section 340 - 054- 0065(2) for the purpose of financing the Project. (E) PROJECT TITLE: Wastewater Facilities Planning. (F) DESCRIPTION OF THE PROJECT: Facilities planning per the Borrower's application dated January 9, 2009. See Attachment 1 of that application. (G) INTEREST RATE: One and 25/100 percent (1.25 %) per annum. Calculation of interest is also discussed in ARTICLE 2(E) and in ARTICLE 2(F)(4) of this Agreement. (H) REPAYMENT PERIOD: Five (5) years after the Completion Date. (I) TERMS OF REPAYMENT: An interest -only payment six months after the Project Completion Date and thereafter semi - annual payments of principal and interest in accordance with Appendix A and ARTICLE 2(F) of this Agreement. (J) PLEDGE: The Borrower hereby grants to DEQ a security interest in and irrevocably pledges its Net Revenues and Fund 296 to pay the amounts due under this Loan Agreement. The Net Revenues and Fund 296 so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall, except any lien securing an obligation, encumbrance, dedication or restriction existing as of the execution of this Agreement, be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 287A.310. The Borrower represents DESCHUTES COUNTY: R27611 GENN7914.Doc (09127106) LOAN AGREEMI NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 4 and warrants that the pledge of Net Revenues and Fund 296 hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 287A.310. The Recipient hereby pledges its full faith and credit and taxing power within the limitations of Article XI, Sections 11 and 11 b, of the Oregon Constitution to pay the amounts due under the Loan Agreement. The Loan Agreement shall be payable from all legally available funds of the Recipient. The Borrower covenants with DEQ and any assignee of this Agreement that except as otherwise expressly provided herein, the Borrower shall not issue any other obligations which have a pledge or lien on the Net Revenues or Fund 296 superior to or on a parity with the pledge herein granted without the written permission of DEQ. This Loan is a parity obligation with all other CWSRF loans between DEQ and the Borrower; provided, however, that this provision shall not affect the priority that prior CWSRF loans are entitled to in relation to any loans between Borrower and any third parties. ARTICLE 2: GENERAL LOAN PROVISIONS (A) AGREEMENT OF DEQ TO LOAN. DEQ agrees to loan the Borrower an amount not to exceed the Loan Amount, subject to the terms and conditions of this Loan Agreement, but solely from funds available to DEQ in the Water Pollution Contml Revolving Fund for its Clean Water State Revolving Fund program. This Loan Agreement is given as evidence of a Loan to the Borrower made by DEQ pursuant to ORS Chapters 190, 287, 288, and 468, and OAR Chapter 340, all as amended from time to time, consistent with the express provisions hereof. (B) AVAILABILITY OF FUNDS. DEQ's obligation to make the Loan described in this Agreement is subject to the availability of funds in the Water Pollution Control Revolving Fund for its CWSRF program, and DEQ shall have no liability to the Borrower or any other party if such funds are not available or are not available in amounts sufficient to fund the entire Loan described herein. Funds may not be available ahead of the estimated schedule of disbursements submitted by the Borrower, which is attached as Appendix B. This schedule may be revised from time to time by the parties without the necessity of an amendment by replacing the then current Appendix B with an updated Appendix B which is dated and signed by both parties. (C) DISBURSEMENT OF LOAN PROCEEDS. (1) Project Account(s). Loan proceeds (as and when disbursed by DEQ to the Borrower) shall be deposited in a Project account(s). The Borrower shall maintain Project account(s) as segregated account(s). Funds in the Project account(s) shall only be used to pay for Project costs, and all earnings on the Project account(s) shall be credited to the account(s). (2) Documentation of Expenditures. The Borrower shall provide DEQ with written evidence of work performed upon the Project and Project - related expenses incurred and such receipts for the payment of the same, releases, satisfactions and other signed statements and forms as DEQ may reasonably require. DEQ will disburse funds to pay Project costs only after the Borrower has provided documentation satisfactory to DEQ that such Project costs have been incurred and qualify for reimbursement hereunder. (3) Adjustments and Corrections. DEQ may at any time review and audit requests for disbursement and make adjustments for, among other things, ineligible DESCHUTES COUNTY: R27611 GENN79I4.DOC (09/27/06) LOAN AGREEMI NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 5 expenditures, mathematical errors, work not performed, unacceptable work and other discrepancies. Nothing in this Agreement requires DEQ to pay any amount for work performed or Project- related expenses incurred unless DEQ is satisfied that the claim for such work or expenses is reasonable and that the Borrower actually expended such amount for the Project. In addition, DEQ shall not be required to make any disbursement which would cause the total of all disbursements made hereunder (including the requested disbursement) to be greater than the total estimated cost of the work completed at the time of the disbursement, as determined by DEQ. (D) AGREEMENT OF BORROWER TO REPAY. The Borrower agrees to repay all amounts owed on this Loan as described in ARTICLE 1(I) and ARTICLE 2(F) in U.S. Dollars in immediately available funds at the place listed for DEQ in ARTICLE 10(A). In any case, the Borrower agrees to repay all amounts owed on this Loan within the Repayment Period. (E) INTEREST. Interest will accrue at the rate specified in ARTICLE 1(G) from the date that a disbursement hereunder is mailed or delivered to the Borrower or deposited into an account of the Borrower. Interest will accrue using a 365/366 day year and actual days elapsed until the Final Loan Amount is determined and the final repayment schedule is prepared and thereafter on a 360 - day year basis and actual days elapsed. (F) LOAN REPAYMENT. (1) Preliminary Repayment Schedule; Interim Payments. The attached Appendix A is a preliminary repayment schedule based on the estimated date of the first disbursement hereunder and Loan Amount. Until the fmal repayment schedule is effective, the Borrower shall make the payments set forth in the preliminary repayment schedule. (2) Final Repayment Schedule. After the Borrower has submitted its final request for Loan proceeds and DEQ has made all required disbursements hereunder, DEQ will determine the Final Loan Amount and prepare a fmal payment schedule that provides for level semi - annual installment payments of principal and interest (commencing on the next semi - annual payment date), each in an amount sufficient to pay accrued interest to the date of payment and to pay so much of the principal balance as to fully amortize the then Outstanding Loan Amount over the remaining Repayment Period. This fmal repayment schedule, when signed and dated by the parties, will replace the preliminary payment schedule as Attachment A without the necessity of an amendment to this Agreement. (3) Crediting of Scheduled Payments. A scheduled payment received before the scheduled repayment date will be applied to interest and principal on the scheduled repayment date, rather than on the day such payment is received. Scheduled payments will be applied first to fees due, if any, and then to interest, according to the applicable repayment schedule, and then to principal. (4) Crediting of Unscheduled Payments. All unscheduled payments, including any prepayments and partial payments, will be applied first to fees due, if any, and then to accrued unpaid interest (which will be computed as otherwise provided in this Agreement, except that interest from the last payment date will be calculated using a 365/366 day year and actual days elapsed), and then to principal. In the case of a Loan prepayment that does DESCHUTES COUNTY: 827611 GENN7914.DOC (09/27/06) LOAN AGREEMI NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 6 not prepay all of the principal of the Loan, DEQ will determine, in its sole discretion, how it will apply such Loan prepayment to the Outstanding Loan Amount. After a partial payment, DEQ may, in its sole and absolute discretion, reamortize the Outstanding Loan Amount at the same interest rate for the same number of payments to decrease the Loan payment amount; provided, however, that nothing in this Agreement requires DEQ to accept any partial payment or to reamortize the Outstanding Loan Amount if it accepts a partial payment. (5) Final Payment. The Outstanding Loan Amount, all accrued and unpaid interest, and all unpaid fees and charges due hereunder are due and payable no later than five (5) years after the Completion Date. (G) PREPAYMENT. (1) Optional Prepayment. The Borrower may prepay any amount owed on this Loan without penalty on any business day upon 24 hours prior written notice. Any prepayment made hereunder will be applied in accordance with ARTICLE 2(F)(4). (2) Refinancing of Loan by the Borrower. If the Borrower refinances the portion of the Project financed by this Loan or obtains an additional grant or loan that is intended to finance the portion of the Project financed by this Loan, it will prepay the portion of the Loan being refinanced by the additional grant or loan. (3) Ineligible Uses of the Project. If the Borrower uses the Project for uses that are other than those described in ARTICLE 1(F) ( "ineligible uses "). the Borrower shall, upon demand by DEQ, prepay an amount equal to the Outstanding Loan Amount multiplied by the percentage (as determined by DEQ) of ineligible use of the Project. Such prepayment shall be applied against the most remotely maturing principal installments and shall not postpone the due date of any payment(s) hereunder. (H) LATE PAYMENT FEE. The Borrower agrees to pay immediately upon DEQ's demand a late fee equal to five percent (5 %) of any payment (including any loan fee) that is not received by DEQ on or before the tenth (10`h) calendar day after such payment is due hereunder. (I) TERMINATION OF LOAN AGREEMENT. Upon performance by the Borrower of all of its obligations under this Loan Agreement, including payment in full of the Final Loan Amount, all accrued interest and all fees, charges and other amounts due hereunder, this Loan Agreement will terminate, and DEQ will release its interest in any collateral given as security under this Loan Agreement. (J) PLANNING REVIEW. The Borrower agrees to submit planning documents to DEQ for review at the following stages of completion: 30 percent, 60 percent and 100 percent. Planning documents will be submitted to the DEQ Pendleton office, to the attention of the CWSRF Project Officer. Work on this Project may continue while DEQ reviews the planning documents and prepares any comments. ARTICLE 3: GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS DESCHUTES COUNTY: R2761 1 GENN7914.Doc (09/27/06) LOAN AGREEMI NT OREGON DEPARTMENT or ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 7 (A) REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower represents and warrants to DEQ that: (1) It is a duly formed and existing municipal corporation of the State of Oregon and has full corporate and other powers to enter into this Loan Agreement. (2) This Agreement has been duly authorized and executed and delivered by an authorized officer of the Borrower and constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms. (3) All acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Agreement have existed, have happened, and have been performed in due time, form and manner as required by law. (4) Neither the execution of this Loan Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with any of the terms and conditions of this Loan Agreement will violate any provision of law, or any order of any court or other agency of government, or any agreement or other instrument to which the Borrower is now a party or by which the Borrower or any of its properties or assets is bound. Nor will this Loan Agreement be in conflict with, result in a breach of, or constitute a default under, any such agreement or other instrument, or, except as provided hereunder, result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower. (5) This Loan Agreement does not create any unconstitutional indebtedness. The Loan Amount together with all of the Borrower's other obligations does not, and will not, exceed any limits prescribed by the Constitution, any of the statutes of the State of Oregon, the Borrower's charter, or any other authority. (6) The Project is a project which the Borrower may undertake pursuant to Oregon law and for which the Borrower is authorized by law to borrow money. (7) The Borrower has full legal right and authority to execute and deliver this Agreement, to undertake and complete the Project, and to carry out and consummate all transactions contemplated by this Agreement. (8) The information contained herein which was provided by the Borrower is true and accurate in all respects, and there is no material adverse information relating to the Project or the Loan, known to the Borrower, that has not been disclosed in writing to DEQ. (9) No litigation exists or has been threatened that would cast doubt on the enforceability of the Borrower's obligations under this Loan Agreement. (10) The estimated Completion Date of the Project is March 31, 2010. (11) The estimated total Costs of the Project are $254,595. DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREE 'LENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND P kGE 8 (12) The Borrower is in compliance with all laws, ordinances, and governmental rules and regulations to which it is subject, the failure to comply with which would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Borrower or the Project. (B) CONTINUING REPRESENTATIONS OF THE BORROWER. The representations of the Borrower contained herein shall be true on the closing date for the Loan and at all times during the term of this Agreement. (C) REPRESENTATIONS AND WARRANTIES OF DEQ. DEQ represents and warrants that the Director has power under ORS Chapter 468 and OAR Chapter 340, Division 54, to enter into the transactions contemplated by this Loan Agreement and to carry out DEQ's obligations thereunder and that the Director is authorized to execute and deliver this Loan Agreement and to make the Loan as contemplated hereby. ARTICLE 4: CONDITIONS TO LOAN (A) CONDITIONS TO CLOSING. DEQ's obligations hereunder are subject to the condition that on or prior to June 30, 2009, the Borrower will duly execute and deliver to DEQ the following items, each in form and substance satisfactory to DEQ and its counsel: (1) Borrower; this Agreement duly executed and delivered by an authorized officer of the (2) a copy of the ordinance, order or resolution of the governing body of the Borrower authorizing the execution and delivery of this Agreement, certified by an authorized officer of the Borrower; (3) an opinion of the legal counsel to the Borrower to the effect that: (a) The Borrower has the power and authority to execute and deliver and perform its obligations under this Loan Agreement; (b) This Loan Agreement has been duly executed and acknowledged where necessary by the Borrower's authorized representative(s), all required approvals have been obtained, and all other necessary actions have been taken, so that this Loan Agreement is valid, binding, and enforceable against the Borrower in accordance with its terms, except as such enforcement is affected by bankruptcy, insolvency, moratorium, or other laws affecting creditors rights generally; (c) To such counsel's knowledge, this Loan Agreement does not violate any other agreement, statute, court order, or law to which the Borrower is a party or by which it or any of its property or assets is bound; and (d) The Net Revenues used as security for the Loan will not constitute taxes that are limited by Section 11b, Article XI of the Oregon Constitution; and (4) such other documents, certificates, opinions and information as DEQ or its counsel may reasonably require. DESCHUTES COUNTY: R27611 GENN7914.uoc (09/27/06) LOAN AGREEN ENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 9 (B) CONDITIONS TO DISBURSEMENTS. Notwithstanding anything in this Agreement to the contrary, DEQ shall have no obligation to make any disbursement to the Borrower under this Agreement unless: (1) No Event of Default and no event, omission or failure of a condition which would constitute an Event of Default after notice or lapse of time or both has occurred and is continuing; (2) All of the Borrower's representations and warranties in this Agreement are true and correct on the date of disbursement with the same effect as if made on such date; and (3) The Borrower submits a disbursement request to DEQ that complies with the requirements of ARTICLE 2(C); provided, however, DEQ shall be under no obligation to make any disbursement if: (1) DEQ and the SRF and CWSRF Program have not received sufficient funding, appropriations and other expenditure authorizations to allow DEQ, in the exercise of its reasonable administrative discretion, to make the disbursement and there are not sufficient moneys available in the SRF and CWSRF, as determined by DEQ in the reasonable exercise of its administrative discretion, to permit DEQ to make the disbursement; or (2) there has been a change in any applicable state or federal law, statute, rule or regulation so that the Project is no longer eligible for the Loan. ARTICLE 5: COVENANTS OF BORROWER (A) GENERAL COVENANTS OF THE BORROWER. Until the Loan is paid in full, the Borrower covenants with DEQ that: (1) The Borrower shall use the Loan funds only for payment or reimbursement of the Costs of the Project in accordance with this Loan Agreement. The Borrower acknowledges and agrees that the Costs of the Project do NOT include any Lobbying costs or expenses incurred by Borrower or any person on behalf of Borrower and that Borrower will not request payment or reimbursement for Lobbying costs and expenses. (2) If the Loan proceeds are insufficient to pay for the Costs of the Project in full, the Borrower shall pay from its own funds and without any right of reimbursement from DEQ all such Costs of the Project in excess of the Loan proceeds. (3) The Borrower's grantee, Sunriver Environmental LLC ("Sunriver") is, and the Borrower will cause Sunriver to continue to be, the owner of the Project and shall defend them against the claims and demands of all other persons at any time claiming the same or any interest therein. (4) Concurrent with the execution and delivery of this Loan Agreement, or as soon thereafter as practicable, the Borrower shall take all steps necessary to cause the DESCHUTES COUNTY: R27611 GENN79I4.Doc (09/27/06) LOAN AGREEM :NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 10 Project to be completed in a timely manner in accordance with all applicable DEQ requirements. (5) The Borrower shall take no action that would adversely affect the eligibility of the Project as a CWSRF project or cause a violation of any Loan covenant in this Agreement. (6) The Borrower shall undertake the Project, request disbursements under this Loan Agreement, and use the Loan proceeds in full compliance with all applicable laws and regulations of the State of Oregon, including but not limited to ORS Chapter 468 and Oregon Administrative Rules Sections 340 - 054 -0005 to 340 - 054 -0065, as they may be amended from time to time, and all applicable federal authorities and laws and regulations of the United States, including but not limited to Title VI of the Clean Water Act as amended by the Water Quality Act of 1987, Public Law 100 -4, the federal cross - cutters listed at Appendix D (attached hereto and by this reference made a part hereof) and regulations of the U.S. Environmental Protection Agency, all as they may be amended from time to time. (7) Interest paid on this Loan Agreement is not excludable from gross income under Section 103(a) of the United States Internal Revenue Code of 1986, as amended (the "Code "). However, the DEQ may have funded this loan with the proceeds of state bonds that bear interest that is excludable from gross income under the Section 103(a) of the Code. Section 141 of the Code requires that the state not allow the proceeds of the state bonds to be used by private entities (including the Federal government) in such a way that the state bonds would become "private activity bonds" as defined in Section 141 of the Code. To protect the state bonds the Borrower agrees that it shall not use the Loan proceeds or lease, transfer or otherwise permit the use of the Project by any private person or entity in any way that that would cause this Loan Agreement or the state bonds to be treated as "private activity bonds" under Section 141 of the Code and the regulations promulgated under that section of the Code. (B) LOAN RESERVE REQUIREMENT; LOAN RESERVE ACCOUNT. (1) Loan Reserve Requirement. The Loan reserve requirement equals 100% times one -half of the average annual debt service based on the final repayment schedule. Until the Final Loan Amount is calculated, the Loan Reserve Requirement is $4,157. The Borrower shall deposit the Loan reserve requirement amount into the Loan Reserve Account no later than the date the first payment is due hereunder. (2) Loan Reserve Account. The Borrower shall create a segregated Loan Reserve Account that shall be held in trust for the benefit of DEQ. The Borrower hereby grants to DEQ a security interest in and irrevocably pledges the Loan Reserve Account to pay the amounts due under this Loan Agreement. The funds in Loan Reserve Account so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 288.594. The Borrower represents and warrants that the pledge of the Loan Reserve DESCHUTES COUNTY: R27611 GENN7914.00c (09/27/06) LOAN AGREEM ENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 11 Account hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 288.594. The Borrower shall use the funds in the Loan Reserve Account solely to pay amounts due hereunder until the principal, interest, fees, and any other amounts due hereunder have been fully paid. (3) Additional Deposits. If the balance in the Loan Reserve Account falls below the Loan reserve requirement, the Borrower shall promptly deposit from the first Net Revenues available after payment of the amounts due hereunder (unless the Borrower has previously made such deposit from other money of the Borrower) an amount sufficient to restore the balance up to the Loan reserve requirement. (C) INSURANCE. At its own expense, the Borrower shall, during the term of this Agreement, procure and maintain insurance coverage (including, but not limited to, hazard, flood and general liability insurance) adequate to protect DEQ's interest and in such amounts and against such risks as are usually insurable in connection with similar projects and as is usually carried by entities operating similar facilities. The insurance shall be with an entity which is acceptable to DEQ. The Borrower shall provide evidence of such insurance to DEQ. Self insurance maintained pursuant to a recognized municipal program of self - insurance will satisfy this requirement. (D) INDEMNIFICATION. The Borrower shall, to the extent permitted by law and the Oregon Constitution, indemnify, save and hold the State, its officers, agents and employees harmless from and (subject to ORS Chapter 180) defend each of them against any and all claims, suits, actions, losses, damages, liabilities, cost and expenses of any nature whatsoever resulting from, arising out of or relating to the acts or omissions of the Borrower or its officers, employees, subcontractors or agents in regard to this Agreement or the Project. (E) THE BORROWER'S FINANCIAL RECORDS; FINANCIAL REPORTING REQUIREMENTS. (1) Financial Records. The Borrower shall keep proper and complete books of record and account and maintain all fiscal records related to this Agreement, the Project, and the Facility in accordance with generally accepted accounting principles, generally accepted government accounting standards, the requirements of the Governmental Accounting Standards Board, and state minimum standards for audits of municipal corporations. The Borrower must maintain separate Project accounts in accordance with generally accepted government accounting standards promulgated by the Governmental Accounting Standards Board. The Borrower will permit DEQ and the Oregon Secretary of State and their representatives to inspect its properties, and all work done on the Project, and DEQ, the Oregon Secretary of State and the federal government and their duly authorized representatives shall have access to the Borrower's fiscal records and other books, documents, papers, plans and writings that are pertinent to this Agreement to perform examinations and audits and make excerpts and transcripts and take copies. (2) Record Retention Period. The Borrower shall retain and keep accessible files and records relating to the Project for at least three (3) years (or such longer period as may be required by applicable law) after Project completion as determined by DEQ and financial files and records until all amounts due under this Loan Agreement are fully repaid, DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREEM [NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 12 or until the conclusion of any audit, controversy, or litigation arising out of or related to this Agreement, whichever date is later. (3) Audit. Federal enabling legislation and applicable regulations require an audit of each CWSRF Loan. The Borrower agrees to provide to DEQ the following which DEQ agrees to accept as adequate to meet this federal audit requirement. (a) As soon as possible, but in no event later than six (6) months following the Project Completion Date, a full and complete accounting of the Costs of the Project, including but not limited to documentation to support each cost element and a summary of the Costs of the Project and the sources of funding; and (b) As soon as possible, but in no event later than nine (9) months after the end of each fiscal year, a copy the Borrower's annual audit report. (F) PROJECT ASSURANCES. Nothing in this Loan Agreement prohibits the Borrower from requiring more assurances, guarantees, indemnity or other contractual requirements from any party performing Project work. (G) FUND 296: Borrower agrees that: (1) It will account for all activities of the CDD Groundwater Partnership Program in Fund 296 that is pledged as security for this Loan; (2) It will deposit in Fund 296 the proceeds (net of expenses of sale) of all sales of land within an area of Borrower -owned land in La Pine, which proceeds are dedicated to groundwater protection; and (3) It will deposit in Fund 296 all moneys received to pay assessments on the development on any portion of said land. ARTICLE 6: DISCLAIMERS BY DEQ; LIMITATION OF DEQ's LIABILITY (A) DISCLAIMER OF ANY WARRANTY. DEQ EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE PROJECT, THE QUALITY OF DATA AND INFORMATION USED IN AND THAT BECOME A PART OF THE PROJECT, THE QUALITY OF THE WORK PERFORMED UPON THE PROJECT, OR THE EXTENT AND STAGE OF COMPLETION OF THE PROJECT. No such warranty or guarantee shall be implied by virtue of any review or disbursement made by DEQ. Any review done by DEQ shall be for its sole benefit. (B) DISCLAIMER OF LIABILITY OF DEQ. DEQ EXPRESSLY DISCLAIMS LIABILITY OF ANY KIND OR CHARACTER WHATSOEVER FOR PAYMENT OF ANY COSTS OR EXPENSES INCURRED FOR THE PROJECT OR OTHERWISE IN CONNECTION WITH THE COMPLETION OF THE PROJECT OR CONTRACTS ENTERED INTO BY THE BORROWER WITH THIRD PARTIES FOR THE COMPLETION DESCHUTES COUNTY: R27611 GENN79 (09/27/06) LOAN AGREEMI Ni' OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 13 OF THE PROJECT. All Project costs and expenses, including any indirect costs, shall be the responsibility of and shall be paid by the Borrower. (C) NONLIABILITY OF STATE. (1) The State and its officers, agents and employees shall not be liable to the Borrower or to any other party for any death, injury, damage, or loss that may result to any person or property by or from any cause whatsoever, arising out of any omissions or errors in the findings, conclusions and recommendations for the Project, any agreements or documents between the Borrower and third parties related to the Project or any activities related to the Project. DEQ shall not be responsible for doing cost comparisons or reviewing or monitoring compliance by the Borrower or any other party with state procurement laws and regulations. (2) The Borrower hereby expressly releases and discharges DEQ, its officers, agents and employees from all liabilities, obligations and claims arising out of the Project work or under the Loan, subject only to exceptions previously agreed upon in writing by the parties. (3) Any findings by DEQ concerning the Project and any review or analyses of the Project by DEQ are for determining eligibility for the Loan and disbursement of Loan proceeds only. Such findings do not constitute an endorsement of the findings, conclusions and recommendations of the Project or its components or an assurance of any kind for any other purpose. ARTICLE 7: DEFAULT AND REMEDIES (A) EVENTS OF DEFAULT. The occurrence of one or more of the following events constitutes an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency: (1) The Borrower fails to make any Loan payment within thirty (30) days after the payment is scheduled to be made according to the repayment schedule; (2) Any representation or warranty made by the Borrower hereunder was untrue in any material respect as of the date it was made; (3) The Borrower becomes insolvent or admits in writing an inability to pay its debts as they mature or applies for, consents to, or acquiesces in the appointment of a trustee or receiver for the Borrower or a substantial part of its property; or in the absence of such application, consent, or acquiescence, a trustee or receiver is appointed for the Borrower or a substantial part of its property and is not discharged within sixty (60) days; or any bankruptcy, reorganization, debt arrangement or moratorium or any dissolution or liquidation proceeding is instituted by or against the Borrower and, if instituted against the Borrower, is consented to or acquiesced in by the Borrower or is not dismissed within twenty (20) days; (4) As a result of any changes in the United States Constitution or the Oregon Constitution or as a result of any legislative, judicial, or administrative action, any DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREEM ENT OREGON DEPARTMENT OF. ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PA-3E 14 part of this Loan Agreement becomes void, unenforceable or impossible to perform in accordance with the intent and purposes of the parties hereto or is declared unlawful; (5) The Borrower defaults in the performance or observance of any covenants or agreements contained in any loan documents between itself and any lender or lenders, and the default remains uncured upon the expiration of any cure period provided by said loan documents; or (6) The Borrower fails to cure non - compliance in any material respect with any other covenant, condition, or agreement of the Borrower hereunder, other than as set forth in (1) through (5) above within a period of thirty (30) days after DEQ provides notice of the noncompliance. (B) REMEDIES. If DEQ determines that an Event of Default has occurred, DEQ may, without further notice: (1) Declare the Outstanding Loan Amount plus any unpaid accrued interest, fees and any other amounts due hereunder immediately due and payable; (2) Cease making disbursement of Loan proceeds or make some disbursements of Loan proceeds and withhold or refuse to make other disbursements; (3) Appoint a receiver, at the Borrower's expense, to operate the facility that produces the pledged revenues and collect the Gross Revenues (4) Pay, compromise or settle any liens on the Project or pay other sums required to be paid by the Borrower in connection with the Project, at DEQ's discretion, using the Loan proceeds and such additional money as may be required. If DEQ pays any encumbrance, lien, claim, or demand, it shall be subrogated, to the extent of the amount of such payment, to all the rights, powers, privileges, and remedies of the holder of the encumbrance, lien, claim, or demand, as the case may be. Any such subrogation rights shall be additional cumulative security for the amounts due under this Loan Agreement; (5) Direct the State Treasurer to withhold any amounts otherwise due to the Borrower from the State of Oregon and, to the extent permitted by law, direct that such funds be applied to the amounts due DEQ under this Loan Agreement and be deposited into the SRF; (6) Pursue any other legal or equitable remedy it may have. ARTICLE 8: DEFINITIONS (A) "BORROWER" means the public agency (as defined in ORS 468.423(2)) shown as the "Borrower" in Article 1(A) of this Agreement. (B) "COMPLETION DATE" means the date on which the Project is completed, and, if required, approved by DEQ. DESCHUTES COUNTY: R27611 GENN79I4.Doc (09/27/06) LOAN AGREED [ENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 15 (C) "COSTS OF THE PROJECT" means expenditures approved by DEQ that are necessary to carry out the Project in compliance with DEQ's requirements and may include but are not limited to the following items: (1) The costs and expenses that the Borrower is required to pay under the terms of any contract for the performance of work related to the Project; (2) The costs of insurance of all kinds that may be required or necessary during the course of completion of the Project; (3) The legal, financing and administrative costs of obtaining the Loan and completing the Project; and (4) Any other costs approved in writing by DEQ. (D) "CWSRF PROGRAM" or "CWSRF" means the Clean Water State Revolving Fund Loan Program, a loan program administered by DEQ under ORS 468.423 to 468.440. (E) "DEQ" means the Oregon Department of Environmental Quality. (F) "DIRECTOR" means the Director of DEQ or the Director's authorized representative. (G) "FINAL LOAN AMOUNT" means the total of all Loan proceeds disbursed to the Borrower under the Loan Agreement, determined on the date on which the Borrower indicates that no further Loan funds will be requested, all eligible expenditures have been reimbursed from the Loan proceeds, or all Loan proceeds have been disbursed hereunder, whichever occurs first. (H) "FUND 296" means the Deschutes County Fund 296 — CDD Groundwater Partnership which was established for the purpose of providing financial assistance in protecting South County groundwater. (I) "GROSS REVENUES" means all income resulting from activities of the Borrower's CDD Groundwater Partnership (including but not limited to the proceeds, net of expenses of sale, of all sales of land within an area of Borrower -owned land in La Pine, which proceeds are dedicated to groundwater protection and all moneys received to pay assessments on the development on any portion of said land) and any interest earnings thereon. (J) "LOAN" means the loan made pursuant to this Loan Agreement. (K) "LOAN AGREEMENT" or "AGREEMENT" means this loan agreement and its exhibits, appendices, schedules and attachments (which are by this reference incorporated herein), and any amendments thereto. (L) "LOAN AMOUNT" means the maximum amount DEQ agrees to loan the Borrower hereunder. (M) "LOAN RESERVE ACCOUNT" means the account described in ARTICLE 5(C)(2). DESCHUTES COUNTY: R27611 GENN7914,Doc (09/27/06) LOAN AGREEM ':NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 16 (N) "LOBBYING" means influencing or attempting to influence a member, officer or employee of a governmental agency or legislature in connection with the awarding of a government contract, the making of a government grant or loan or the entering into of a cooperative agreement with such governmental entity or the extension, continuation, renewal, amendment or modification of any of the above. (0) "NET REVENUES" means the Gross Revenues less the Operating Expenses. (P) "OPERATING EXPENSES" means all direct and indirect expenses incurred for administration of the Borrower's Fund 296, including but not limited to administrative expenses, legal, financial and accounting expenses, insurance premiums, claims (to the extent that monies are not available from insurance proceeds), taxes, engineering expenses relating to operation and maintenance, payments and reserves for pension, retirement, health, hospitalization, and sick leave benefits, and any other similar expenses to be paid to the extent properly and directly attributable to operations of the Fund 296. (Q) "OUTSTANDING LOAN AMOUNT" means, as of any date, the sum of all disbursements to the Borrower hereunder less the sum of all Loan principal payments received by DEQ. (R) "PROJECT" means the activities or documents described in ARTICLE 1(E) and (F). (S) "REPAYMENT PERIOD" means the repayment period specified in ARTICLE 1 (H) which shall not in any event exceed five (5) years after the Completion Date. (T) "SRF" means the Water Pollution Control Revolving Fund established under ORS 468.427, also known as the State Revolving Fund. (U) "STATE" means the State of Oregon. ARTICLE 9: MISCELLANEOUS (A) NOTICES. All notices, payments, statements, demands, requests or other communications under this Loan Agreement by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if delivered by personal delivery, by certified mail, return receipt requested, or by facsimile transmission, and, if to the Borrower, delivered, addressed or transmitted to the location or number listed in ARTICLE 1(B), and if to DEQ, delivered, addressed or transmitted to: Clean Water State Revolving Fund Loan Program Water Quality Division Department of Environmental Quality 811 S.W. Sixth Avenue Portland, Oregon 97204 -1390 Fax (503) 229 -6037 or to such other addresses or numbers as the parties may from time to time designate. Any notice or other communication so addressed and mailed shall be deemed to be given five (5) days after mailing. Any notice or other communication delivered by facsimile shall be deemed to be given DESCHUTES COUNTY: R27611 GENN79I4.Doc (09/27/06) LOAN ACRE} MENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 17 when receipt of the transmission is generated by the transmitting machine. To be effective against DEQ, such facsimile transmission must be confirmed by telephone notice to DEQ's CWSRF Program Coordinator. Any notice or other communication by personal delivery shall be deemed to be given when actually delivered. (B) WAIVERS AND RESERVATION OF RIGHTS. (1) DEQ's waiver of any breach by the Borrower of any term, covenant or condition of this Loan Agreement shall not operate as a waiver of any subsequent breach of the same or breach of any other term, covenant, or condition of this Loan Agreement. DEQ may pursue any of its remedies hereunder concurrently or consecutively without being deemed to have waived its right to pursue any other remedy. (2) Nothing in this Loan Agreement affects DEQ's right to take remedial action, including, but not limited to, administrative enforcement action and action for breach of contract against the Borrower, if the Borrower fails to carry out its obligations under this Loan Agreement. (C) TIME IS OF THE ESSENCE. The Borrower agrees that time is of the essence under this Loan Agreement. (D) RELATIONSHIP OF PARTIES. The parties agree and acknowledge that their relationship is that of independent contracting parties, and neither party hereto shall be deemed an agent, partner, joint venturer or related entity of the other by reason of this Loan Agreement. (E) No THIRD PARTY BENEFICIARIES. DEQ and the Borrower are the only parties to this Loan Agreement and are the only parties entitled to enforce the terms of this Loan Agreement. Nothing in this Loan Agreement gives, is intended to give, or shall be construed to give or provide any benefit or right not held by or made generally available to the public, whether directly, indirectly or otherwise, to third persons unless such third persons are individually identified by name herein and expressly described as intended beneficiaries of the terms of this Loan Agreement. Any inspections, audits, reports or other assurances done or obtained, or approvals or consents given, by DEQ are for its benefit only for the purposes of administering this Loan and the CWSRF Program. (F) ASSIGNMENT. DEQ shall have the right to transfer the Loan or any part thereof, or assign any or all of its rights under this Loan Agreement, at any time after execution of this Loan Agreement upon written notice to the Borrower. Provisions of this Loan Agreement shall inure to the benefit of DEQ's successors and assigns. This Loan Agreement or any interest therein may be assigned or transferred by the Borrower only with DEQ's prior written approval (which consent may be withheld for any reason), and any assignment or transfer by the Borrower in contravention of this ARTICLE 9(F) shall be null and void. (G) DEQ NOT REQUIRED TO ACT. Nothing contained in this Loan Agreement requires DEQ to incur any expense or to take any action hereunder in regards to the Project. (H) FURTHER ASSURANCES. The Borrower and DEQ agree to execute and deliver any written instruments necessary to carry out any agreement, term, condition or assurance in this Loan Agreement whenever a party makes a reasonable request to the other party for such instruments. DESCHUTES COUNTY: R2761 I GENN7914.Doc (09/27/06) LOAN AGRE MENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 18 (I) VALIDITY AND SEVERABILITY; SURVIVAL. If any part, term, or provision of this Loan Agreement or of any other Loan document shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by either party, the validity of the remaining portions, terms and provisions shall not be affected, and all such remaining portions, terms and provisions shall remain in full force and effect. Any provision of this Agreement which by its nature or terms is intended to survive termination, including but not limited to ARTICLE 5(E), shall survive termination of this Agreement. (J) No CONSTRUCTION AGAINST DRAFTER. Both parties acknowledge that they are each represented by and have sought the advice of counsel in connection with this Loan Agreement and the transactions contemplated hereby and have read and understand the terms of this Loan Agreement. The terms of this Loan Agreement shall not be construed against either party as the drafter hereof. (K) HEADINGS. All headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Loan Agreement. (L) ATTORNEYS' FEES AND EXPENSES. In any action or suit to enforce any right or remedy under this Agreement, the prevailing party shall be entitled to recover its reasonable attomeys' fees and costs, to the extent permitted by law. (M) LAWS GOVERNING; VENUE; JURISDICTION. This Agreement shall be governed by and construed in accordance with the laws of Oregon without regard to principles of conflicts of law. Any claim, action, suit or proceeding (collectively, "Claim ") between DEQ (and/or any other agency or department of the State of Oregon) and the Borrower that arises from or relates to this Agreement shall be brought and conducted solely and exclusively within the Circuit Court of Marion County for the State of Oregon; provided, however, if a Claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. In no event shall this ARTICLE 10(M) be construed as a waiver by the State of Oregon of any form of defense or immunity, whether it is sovereign immunity, governmental immunity, immunity based on the Eleventh Amendment to the Constitution of the United States or otherwise, from any Claim or from the jurisdiction of any court. BORROWER, BY EXECUTION OF THIS AGREEMENT, HEREBY CONSENTS TO THE IN PERSONAM JURISDICTION OF SAID COURTS. (N) COUNTERPARTS. This Loan Agreement may be executed in any number of counterparts, each of which is deemed to be an original, but all together constitute but one and the same instrument. (0) ENTIRE AGREEMENT; AMENDMENTS. This Loan Agreement and all exhibits and schedules attached hereto (which are by this reference incorporated herein) constitutes the entire agreement between the Borrower and DEQ on the subject matter hereof, and it shall be binding on the parties thereto when executed by all the parties and when all approvals required to be obtained by DEQ have been obtained. This Loan Agreement, including all related Loan documents and instruments, may not be amended, changed, modified, or altered without the written consent of the parties. DESCHUTES COUNTY: 827611 GENN7914.roC (09/27/06) LOAN AGRE ,MENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 19 DESCHUTES COUNTY By: Authorized Officer Typed Name: Title: STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY By: Date Neil Mullane, Water Quality Administrator Date Approved for Legal Sufficiency By the Attorney General's Office Lynn T. Nagasako, Senior AAG Date DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREEM ENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGI 20 APPENDIX A: REPAYMENT SCHEDULE BORROWER: Deschutes County SRF LOAN NO.: R27611 LOAN AMOUNT: $ 40,000 Due ANNUAL INTEREST RATE 1.25% TERM IN YEARS: 5 PAYMENT AMOUNT: $ 4,584 ANNUAL FEE: 0.0% PAYMENT Principal Date Pmt# Principal Interest Fees Total Balance 9/1/2010 1 0 310 3/1/2011 2 4,334 250 9/1/2011 3 4,361 223 3/1/2012 4 4,388 196 9/1/2012 5 4,416 168 3/1/2013 6 4,443 141 9/1/2013 7 4,471 113 3/1/2014 8 4,499 85 9/1/2014 9 4,527 57 3/1/2015 10 4,561 29 40,000 O 310 40,000 O 4,584 35,666 O 4,584 31,305 O 4,584 26,917 O 4,584 22,501 O 4,584 18,058 O 4,584 13,587 O 4,584 9,088 O 4,584 4,561 O 4,590 0 TOTALS 40,000 1,572 0 41,572 REQUIRED LOAN RESERVE: $ 4,157 DESCHUTES COUNTY: R27611 GENN7914.Doc (09/27/06) LOAN AGREE VENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGI 21 APPENDIX B: ESTIMATED CWSRF LOAN DISBURSEMENT SCHEDULE Loan funds are expected to be available based on the following Project schedule: 10/09 -12/ 09: $8,330 1/10 - 3/10: $31,670 DESCHUTES COUNTY: 827611 GENN7914.Doc (09/27/06) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE; 22 APPENDIX C: APPLICABLE FEDERAL AUTHORITIES AND LAWS ( "CROSS- CUTTERS ") SOCIAL LEGISLATION: The Age Discrimination Act of 1975, Pub. L. No. 94 -135, 89 Stat. 713, 42 U.S.C. §6102 (1994). Civil Rights Act of 1964, Pub. L. No. 88 -352, 78 Stat. 252, 42 U.S.C. §2000d (1988). Section 13 of PL 92 -500; Prohibition against Sex Discrimination under the Federal Water Pollution Control Act. Rehabilitation Act of 1973, Pub. L. No. 93 -1123, 87 Stat. 355, 29 U.S.C. §794 (1988), including Executive Orders 11914 and 11250). DESCHUTES COUNTY: R27611 GENN7914.noc (09/27/06) LOAN AGREE KENT