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Position 5 EXHIBIT A 'RUS BULLETIN 1780-27 APPROVED OMB. No. "0572-0121 LOAN RESOLUTION (Public Bodies) ARESOLUTIONOFTHE COUNTYCOUNCIL OF THE COUNTY OF HAWAII AUTHORIZING AND PROVIDING FOR THE INCURRENCE OFINDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST.OF ACQUIRING, CONSTRUCTING, ENLARGING, IMPROVING, AND/OR.EXTENDING ITS PUBLIC WATER DELIVERY SYSTEM FOR IKI PLACE, KOHANAIKI HOMESTEADS FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURiSD1CTION TO SERVE. WHEREAS, itis necessary for the COUNTY OF HAWAII (P.ublic.Body) (hereinafter called Association) to raise a portion of the cost of such undertaking by issuance ofits bonds in. the principal amount of TWO HUNDRED SEVENTY FIVE THOUSAND AND NOII00 DOLLARS ($275,000) pursuant to the provisions of PART I, CHAPTER 47, HAWAII REVISED STATUTES ; and 'WHEREAS, the Association'intends to obtain assistance from the United States Department of Agriculture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural DevelopmentAct (7 U.S.C. 1921 et seq.) in the planning. financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by the Association: NOW THEREFORE, inconsideration ofthe premises the Association hereby resolves: 1. To.have prepared on its behalf and to adopt an ordinance or resolution for the issuance ofits bonds containing such items and in such forms as are required by State statutes and as are agreeable and acceptable to the Government. 2. To refinance the unpaid balance, in whole or in part, ofits bonds upon the request of the Government if at any time it shall appear to the Government thatthe Association is able to refinance its bonds -by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as required by section'333(c) of said Consolidated Farm and Rural DevelopmentAct (7 U.S.C. 1983(c)). 3. To provide for, execute, and comply with Form RD 400-4, "Assurance Agreement," and Form RD 400-1, "Equal Opportunity,Agreement,"' including an "Equal Opportunity Clause," which clause is -to be incorporated in; or attached as arider to, each construction contract and subcontract involving in excess of Sl0,000. 4. To indemnify the Government for any payments made oF losses suffeized by the Gavem-m-ent gn behalf fthA A ssepinflan Sueh iftdefriftifieatien shall be payable frem the same seuree effitads pledged to pay the bands or any other legal ly per foissiblesemee. See Rider A. 5. That upon default in the payments of any principal and accrued interest on the bonds or in the performance of any covenant or agreement contained herein or in the instruments incident to making or insuring the loan, the Government at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and payable, (b) for the account of the Association (payable from the source of funds pledged to pay the bonds or any other legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facility, repair, maintain, and operate orient it. Default under the provisions ofthis resolution or any instrument incident to the making or insuring.ofthe loan may be construed by the Government to constitute default under any other instrument held by the Govemment'and executed or assumed by the Association, and default under any such instrument maybe construed by the Government to constitute default hereunder. 6: Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest therein, or permit others to do so, without the prior written consent of the Government. 7. Not to defease the bonds, or to borrow money, enter into any contractor agreement, or otherwise incur any liabilities for any purpose in connection with the facility (exclusive ofnormal maintenance) without the prior written consent of the Government if such undertaking would:involve the source of funds. pledged to pay the bonds. 8'. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government. Funds may be deposited in -institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States. Any income: from these accounts will be considered as revenues of the system. 9. To comply with all applicable State and Federal' laws and regulations and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and.above that needed to pay operating and mainte- nance, debt service and reserves may only be retained or used to make prepayments on the loan. Revenue cannot be used to pay any expenses which are not directly incurred for the facility financed by USDA. No free service or use of the facilitywill be permitted. According to the Paperwork Reduction Acl of 1995, an agency may not conduct or sponsor, and a perdon is not required to respond lo, a collection of informalion unless it displays a valid OMB cantrol number. The wild OMB control numberfor this information colleciion.is 0572.0121. The time required to complete this information collection is estimated'to averagel hourper response,, including the tlmefor'reviewing instructions, searching existing data sources, gathering and maintaining the. data needed, and completing and reviewing the collection ofinformatton. A-2