Board Of Aldermen - Agenda - 2/23/2016 - P25
SECTION 5.10. Water Rights, Title to Property, Etc. (A) Obtain and maintain walter rights
in such amounts, priorities and qualities as are necessary at all times to meet the needs of its customers;
(B) obtain and maintain title to, valid leasehold interests in, or other valid interests (including easements,
licenses and servitudes) in, all real property on which all water wells, reservoirs, water and wastewater
treatment plants, and warehouse and storage facilities are located; (C) keep all water rights and discharge
rights free and clear of any interest of any third party; and (D) nol suffer or permit any transfer or
encumbrance of any water rights or discharge rights, or abandon any water rights or discharge rights, or
do any act or thing which would impair or cause the loss of any water rights or discharge rights.
ARTICLE 6
NEGATIVE COVENANTS
Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the
Company will not:
SECTION 6.01. Liens. Create, incur, assume, or suffer to exist any Lien on any of its
properties, except:
(A) Liens in favor of other lenders; provided, however, that: (1) at the time thereof,
CoBank is granted a Lien on the same assets and such Lien is shared pro rata by CoBank and such other
lenders pursuant to an intercreditor agreement in form and substance reasonably satisfactory to CoBank;
and (2) the instruments and documents granting and/or perfecting such Lien are in form and content
reasonably satisfactory to CoBank.
(B) Liens for taxes or assessments or other governmental charges or levies if not yet
due and payable or, if due and payable: (i) the Company is contesting same in good faith by appropriate
proceedings; (ii) the Company has established and maintains reserves in the amount due and payable
thereon (including interest and penalties); and (iii) foreclosure or other action to enforce the Lien is
stayed,
(C) Liens in favor of mechanics, landlords, material suppliers, warehouses, carriers,
and like Persons that secure obligations that are not past due or if due and payable: (i) the Company is
contesting same in good faith by appropriate proceedings; (ii) the Company has established and
maintains reserves in the amount due and payable thereon (including interest and penalties), and (iii)
foreclosure or other action to enforce the Lien is stayed.
(D) Deposits and pledges under workers’ compensation, unemployment insurance,
Social! Security, or similar legislation (other than ERISA).
(FE) Deposits and pledges to secure the performance of bids, tenders, contracts (other
than contracts for the payment of money), public and statutory obligations, surety, stay, appeal,
indemnity, performance or other similar bonds, or other similar obligations, in each case arising in the
ordinary course of business.
(F) Judgment and similar Liens arising in connection with court proceeding,
provided the execution or other enforcement of such Liens is effectively stayed, the claims secured
thereby are being actively contested in good faith and by appropriate proceedings, and reserves in the
amount secured thereby (including interest and penalties) are established and maintained by the
Company.
