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13. Refundable Advances. Service Company reserves the right to require refundable advances from Developer in order to provide an additional source of funds which Service Mrpany may utilize in order to assure funding of any particular phase of construction. Stated otherwise, Service Company Huy require a Developer to advance funds in addition to the funds that Developer would ordinarily be required to pay Lor his or its own Capacity needs with said Developer expecting a refund from subsequent developers who may utilize capacity constructed in any given phase. To that intent, refundable advances shall be considered loans from the Developer to the Service Company. At the election of the Service Company, refundable advances Can include a provision for recovery of all costs expended by the service Company for the construction of interim facilities, including related soft costs arca ancillary expenses utilized in the creation, organization and early phase OOnstruction of the Service Company. At a minimum, Service Company may require retundabie advances in the amount of plant Capacity charges for each ERC reserved by any particular developer. Such refundable advances will bear interest at the rate of 12 Percent per annum, or Chase prim:, whichever is higher. Such refundable advances shall be repaid to the Developer from future connection charges received from subsequent developers in excess of plant expansion costs required Of such future developers. 14. Guaranteed Revenues. Service Carpany shall require Developer to Pay guaranteed revenues equal to the then -applicable base facility charge for each FICC reserved by such developer, which such guaranteed revenues shall be payable upon the availability of the capacity subscribed to by each developer. Guaranteed revenues shall be payable, as stated, when capacity is available and sucri payments shall, be rade on a monthly basis. 15. Funding. Prior to the commencement of any construction for the benefit of any developer, service Company shall require, at its sole option, that Developer has guaranteed a wthod of financing of the construction of plant capacity for said Developer. Such guarantees shall be in the form of either cash or irrevocable letter of credit, or other toren of security, the type of which shall be at the sole option of the Service Company. In any event, no phase of construction shall be commenced by Service Company unL•il that phase shall be fully funded. 16. ©inding Effect of Agreermnt. 11his Agreement shall be binding upon and shall inure to the benefit tt oo Developer, Service Company and their respective assigns and successors by rmrger, consolidation, conveyance or otherwise. Any assignment or transfer by Developer shall be approved in writing by Service Carpany. 17. Notice. Until further written notice by either party to the other, all notices provided for herein shall be in writing and transmitted by messenger, by Hail or by telegram, and if to Developer shall be nailed or -11-