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2 APR 211982 Repayment Schedule: The loan will be repayable over a period not exceeding 40 years from the date of loan closing. The first and second payments will be due each September 1, following loan closing and will consist of interest only. The third payment and all succeeding.installments, except the last installment, will be due on September 1, and will consist of bond maturities plus accrued interest. Number of Users and Verification Required: Prior to beginning construction or prior to closing of the FmHA loan, which- ever occurs first, the Entity will furnish evidence that 5,151 water users and 1,978 sewer users have agreed to pay monthly charges for services to be received from the facility being financed. A member of the State Director's staff will audit and authenticate the number of users obtained or to be served. Organization: The -loan docket will include evidence that the Entity is legally organized under state statutes such as a copy of the Charter or other acts of enabling legislation. The Entity's attorney is to provide an opinion that the Entity has authority to carry out the planned method of construction, operation and maintenance, and repayment in connection with the proposed facility.--. -- _ Title to Property: The Entity will provide evidence of title satisfactory to FmHA for all assets which will constitute security for the loan. Security Requirements: Security will consist of revenue bonds secured by a pledge of revenue from the facilities being financed. Use of Recognized Bond Counsel: - The Entity's attorney will -obtain the assistance of recognized bond counsel. All documents necessary to close the interim f$nancing loan and the FmHA loan must be prepared by bond counsel. Appendix C of FmHA Instruction 1942-A will be followed by the Entity's attorney and bond counsel. Two bound copies of the complete bond transcript will be furnished to FmHA by bond counsel at loan closing. Interim Financing: The Entity will attempt to borrow funds from commercial sources in the amount of the FmHA loan for the construction period only. Attached are copies of FmHA Guide 1, and Guide la, "Guide Letter for Use in Informing Private Lender of FmHA's Commitment." If credit from commercial sources cannot be obtained, letters from these sources are.to be secured stating credit is not available and submitted to the District Director. FmHA cannot issue a commitment letter to a lender for interim financing until the following are completed: 1. Bonds are validated. 2. Plans, specifications, contract documents and permits are accepted and approved. 3. Construction bids are received and are within the funds available. 4. FmHA Closing Instructions can be complied with. Provided interim financing is used, construction will not begin until construction and bond bids are obtained, and the.necessary processingand legal work has been completed to the point to where the FmHA loan,could be �osed. The District Director will approve Form FmHA 424-18., "Partial Payment ins ure funds u _,... ruction: p leu.