Loan Security. A. Unless otherwise shown on the Contract Declarations Page, this loan shall be secured by a general obligation pledge of the taxing power of the Contractor. B. Except as otherwise noted in this subsection, if a revenue-based obligation is shown on the Declarations Page, the loan shall be a senior lien obligation payable from all revenues legally available to the Contractor. C. Subject to Board approval, the Contractor may request the loan be obligated as a junior lien revenue pledge if it can be shown that the issuance of additional parity senior lien revenue debt in the requested amount would violate one or more covenants of the outstanding debt. Nothing in this section shall absolve the Contractor of its obligation to make loan repayments when due, and to adjust rates, fees, or surcharges, if necessary, to meet its obligations under this Contract.
Appears in 2 contracts
Sources: Capital Agreement, Capital Agreement