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0 <br />Number of Users and Verification Reauired: <br />Prior to beginning construction or prior to closing of the FmHA loan <br />whichever occurs first, the county will furnish evidence that 798 <br />water users and 183 sewer users will connect to the system. . <br />A member•of the State Director's staff will audit and authenticate the <br />number of users obtained or to be served. <br />Title to Prover <br />The county will provide evidence of title satisfactory to the FmHA for <br />all assets which will constitute security for the loan. <br />Security Requirements: <br />Security will consist of junior revenue bonds and a lien on revenue <br />from the water and sewer facility. <br />Use of Recognized Bond Counsel: <br />The county attorney will obtain the assistance of recognized bond <br />counsel. All documents necessary to close the interim financing loan <br />and the FmHA loan must be prepared by bond counsel. Appendix C of <br />FmRA Instruction 1933-A will be followed by the county attorney and <br />bond counsel. Two bound copies of the complete bond transcript will <br />be furnished to FmHA by bond counsel at loan closing. <br />Interim Financing: <br />The county will borrow funds from commerical sources in the amount of <br />the FmRA loan for the construction period only. Attached are copies <br />of FWHA Guide 1, Guide Letter for Use in Informing Private Lender of <br />FmRA's Commitment. <br />Provided interim financing is used, construction will not begin until <br />construction and bond bids are obtained and the necessary processing <br />and legal work has been completed to the point to where the FmHA loan <br />could be closed. The County.Supervisor will approve Form FmHA 424-18, <br />"Partial Pay Estimate," to insure that funds are used for authorized <br />purposes during the construction period. <br />If interim financing is used, although a binding commitment has been <br />made by the Government, only those funds advanced to pay for construc- <br />tion and other authorized and legally eligible expenses incurred by the <br />county will be deemed by the Government to be interim commercial indebt- <br />edness and retired by FmHA with permanent instruments. The FmHA must <br />be sure that the construction loan is properly administered and that <br />b.. <br />DEC 6 1978 <br />38 PAGE <br />