Common use of Repayment Source Clause in Contracts

Repayment Source. Borrower must maintain positive cash balance of at least 10% of its operating expense/expenditure budget to be able to repay the loan; excess cash balance (over the 10%) should be used to make scheduled payments and catch-up payments. Missed scheduled payments shall be reported by the Finance Department to the City Council and the Utility Board.

Repayment Source. Borrower must maintain positive cash balance of at least 10% of its operating expense/expenditure expense budget to be able to repay the loan; excess cash balance (over the 10%) should be used to make scheduled payments and catch-up payments. Missed scheduled payments shall be reported by the Finance Department Auditor’s Office to the City Council and the Utility BoardCommissioners Court.