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HomeMy WebLinkAboutRes1962-271 I I I RE~OLUTION NO. 271 ~ {' l!' , ,> '. . ) (''-J ( , ~ t o , -y C) ~ t L' \k Lt_,,\7~ , V ''{ \'- i\ f . '. -.q - " :('" ~ " ':, X I',~ \' ';:; r\\>-f t' , ... \,"\. i,~~"", - <- \'~ \ \~ iF" tyil) ACCEPT ANCE OF THE OFFER WHEREAS, there has been filed with the Government in behalf of City of I_rd, Alaska (Legal corporate name of applicant) (herein called the Applicant) an application, Project Number PFL-A la.ka-118 ,dated Apr II 13, 1962, for Federal assistcmce under the Public Facility Loans Program, Public Law 345, 84th Congress, as amended, and the UNITED STATES OF AMERICA, acting by and throug~ the Commuiity Facilities Commissioner, has transmitted to the Applicant for acceptance an Offer dated JU y 13, I' 2 of Federal assistance in connection with the Project referred to,in said application and described in said Offer; and WHEREAS, said Offer has been fully considered in accordance with all pertinent rules of procedure and legal requirements, and made a part of the Applicant's public records; and WHEREAS, it is deemed advisable and in the public interest that said Offer be accepted; NOW, THEREFORE, be it Resolved by CITY OF SEWARD, ALASKA - Seward Water Systl (Name of applicant) that the said Offer, a true and correct copy of which, including the Special Conditions, Bond Specifications and the Terms and Conditions, is hereto attached, be and the same hereby is accepted without reservation or qualification. Passed by the aforementioned governing body of the Applicant on the July. 1902. . sixteenth day of (Signed) ~~ a ~---IZ:.) (Na e of Officer Required to Approve) ~ I Perry R. Stockton d I~ Title: Mayor . eatrice ... Watts, Ci~rk-Trea8. Date July 20, 1962 Approved as a Valid Acc"Rtance of the above-mentioned Offer rp~~~~I~~ 87: rO~oEa~~ Address: 3.,.2 b 1-1- S I- ~ A-t.-d dt {1( 8: 1-(a.Jta. Housing and Home Finance Agency, Community Facilities Administration Form CFA-722 (7-60) r I I I I I i I I i I I RECORDING OFFICER'S CERTIFICATE I, the undersigned, the duly qualified and acting City Clerk of the City Council of the City of Seward, Alaska, and the keeper of the journal of proceedings of the said City Council (herein called the "Governing Body"). do hereby certify: 1. That the attached Reso 1 ut i on (here Inca lied the "Acceptance"), is a true and correct copy of a resolution as finally adopted at a meeting of the Governing Body held on the 16th day of 1962, and duly recorded in my office; 2. That said meeting was duly convened and held in all respects in Jnl y, accordance with law and to the extent required by law due and proper notice of such meeting was given; and a legal quorum was present throughout the meeting, a legally sufficient number of members of the Governing Body voted in the proper manner and for the adoption of said Acceptance; that all other requirements and proceedings Incident to the proper adoption or passage of said resolution have been duly fulfilled, carried out, and otherwise observed; and that I am authorized to execute this Certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Seward, Alaska, this 20th day of July , 1962. ~~-<~ 5?~~- City Clerk Beatrice E. Watts (SEAL) CFA-72I (7-60) HOUSING AND HOME FINANCE AGENCV COMMUNITY FACILITIES ADMINISTRATION PUBLIC FACiliTY lOANS PROGRAM Project No. PFl-A leska-I 18 July 13. 1962 .. " 'v <. Offer Date Contract No. "-602-1500 \ OFFER I t~' \ \' \IG'V l/~.f~,t / Subject to the TermS and Conditions, FOnR CFA-720, dated 7-60, attached ~ I hereto and made a part hereof, the Housing and Home Finance Agency, here- ," Inafter referred to as the Government, hereby offers to make a loan of '~"(Y' not to .xceed $226,000 to City of Seward, A laska, (herein ca lied the , I -( /~ '-'\ \ 1180rrowerll). In order to aid In financing the construction of essential 'if />j publIc works or facilities presently estimated to eost $226,0001 consistIng of rehabilitation of .nd Improvements to an existing water supply and distribution system, (herein caned the IIProject"): Provided. however, that the loan payable hereunder In no event shall exc.ed, In the aggregate, the actual cost of the Project upon completion as detennlned by the Government. The loan herein provided for shall be made by purchase from the Borrower, at the principal amount thereof plus accrued Jnterest thereon, of Its General Obligation Bonds In the aggregate principal amount of $226,000 and bearing Interest at the rate of 3-3/8% per annum, of such description and secured In such manner and contaJnlng such provisions as shall be satisfactory both to the Government and to the Borrower, but generally in eonfonnlty with the Bond Specifications attached hereto. By acceptance hereof the Borrower agrees to offer Its aforesaid obligation. for public sale. The Government will submit Its bid for the Sonds and such bid will be for all of the Bonds at their par value, plus .ccrued Inter.st, at the rate of 3.3/8 'P8'r centUl'll per annl.Nll on .11 or anyone or more of the above blocks of Bonds. In the event any other bidder or bidders offer to purchase all of the 80nds at an Interest cost of not more than 3-5/8 per centum per annum, or any portion of the Bonds In blocks as specified at an Interest cost of not more than 3-5/8 per eentl.Nll per annum for meturl ties of twenty- six (26) years or more, 3-1/2 per centum per annum for maturities ranging between twenty-one (21) and twenty-five (25) years and not more than 3-3/8 per centum per annum for maturities of twenty (20) years or less, the Sonds or any such portion thereof will not be purchased by the Government. In the event of a sale of all the 80nds to a purchaser or purchasers other than the Government, this Agreement sha" tennlnate except with respect to obligations hereunder between the Borrower and the Government as of the date of .uch s.le of the Bonds. In the event any of the Bonds are awarded to the Government, It Is agreed that the obligations hereunder shall continue In the same INnner as If all the Bonds were sold to the Goyernment. In the event no bid Is received from a bidder or bidders other than the GoYernment within the terms herein specified, all the Bonds will be purchased by the Government. By acceptance hereof. the Borrower agrees to reimburse the Government In the sum of $2,500, from the fIrst funds obtained by the 80rrower for construction of the Project, for the Goyernment's field expense. The .foresald Offer of . lo.n shall be subject to the Special Conditions attached hereto and Made a pert hereof as exhibit IIA", and the Bond Spec- Ifications attached hereto and made . part hereof as Exhibit "8". Upon accept.nce, this Offer, together with the lenas and Conditions, the Special Conditions and the Bond Speclflc.tlons r.ferred to, shall become the "Loan Agreement". Thls Offer must be accepted within 60 d.ys from the .~e date. Mitt. Agency 'I 'nlltratlon EXHIBIT "A" . ',if. r .' '\.y(" -i, -\ ,. .\ v\'{" PFL-A laska-liS SPECIAL CONDITIONS: (a) Tne Borrower covenants and agrees to establish In a Bank which Is a member of the Federal Deposit 'nsurance Corporation, and maintain so long as any of these General Obligation Bonds are outstanding, a separate account or accounts, called the IIGeneral Obligation Water System Series 1962 Bond and Interest Sinking Fund Account," Into which shall be deposited all accrued Interest received from the sale of the Bonds, which sum shall be credited against the amount to be deposited Into the account on the next Interest payment date. Following the delivery of the Bonds the Borrower shall deposit on or before each February 15 and August 15 at least such sums derived from the proceeds of ad valorem taxes or other available funds as may be necessary to pay the Interest on the Bonds due on the next Interest payment date and one-half of the principal due within the next succeeding twelve months. (b) The Borrower covenants and agrees that so long as any of the Bonds are outstanding It will levy and collect ad valorem taxes as may be necessary to meet the Interest and principal payments on the Bonds as they become due so that the entire amount of Interest and principal shall be paid at or before maturity. (c) The Terms and Conditions (CFA-720, 7-60) attached to the Offer are hereby modified as follows: Section 8. Prerequisites to Loan Disbursements" Mhlch provides that: IIPrlor to the Government disbursing any portIon of the loan proceeds, the Borrower shall present satisfactory evidence that...(b) It has adopted a Bond Ordinance or ResolutIon, satisfactory In fonn and substance to the Government...1I Is amended to the extent necessary to pennlt loan advances to the Borrower. ~riJ . lno r:t I bnoJ bOb elm'H'> T !1M !,)n,~:).d II brle .0.1 be"" :'lfi" c,rU dllw ,e-iillQ(>J ,lS't'tO z I r11 . s,nlii1q9::l::J', . n....qtl 2nolJHjlllJ$q2 booe sri1 ~n5 2noi3ibooJ I~"~~ ."j"smSfnpA '11;(1.1" .91.,1; 9vodro srl:t mo,l 1l'(6b Oa ilirl1lw b91qe;':)6 ad 1i!u'" 19th) <lInT '(:)0$1" .,1 9:>.IM\ 11 $1oH bne en i ~uoH' noUe,Uin:mt>A 2~1:J lll)/;;:l '('j inl.lMloJ yf. ---.-- ~~-:J .anol'.lsqO '~ewrl1'O~ '01 'oJ~,IO , id EXHIBIT "B" " , , ,}, ,#'1 , I I,' ' .' I ' ,lr v'c. t,t ',j' ^', \' PFL-Alaska-118 GENERAL OBLIGATION 80NDS Aggregate Principal Amount of General OblIgation Bonds: $226,000 Designation: City of Seward General Obligation Water System Bonds, Series 1962. Type: Negotiable, serial, coupon bonds In the event the Government is awarded all or part of the Bonds, the Borrower, at the option of the purchaser(s) shall issue single Bonds with face values in the amount of the respective purchases in lieu of individual denomination Bonds. Such single Bonds shall be regIstered as to princIpal and interest and payable as directed by the purchasers,)ut otherwise complying with the description set forth In Exhibit B hereof. The Borrower shall covenant that, upon request of the holder of a single Bond, It shall Issue, at Its own expense and within 90 days from the date of such request, negotiable bearer coupon bonds in denominations of $1,000, as described in Exhibit B hereof, in aggregate amount equal to the amount of the single Bond stili outstanding. The printing of text of single Bonds shall be of type composition on paper of sufficient weight and strength to prevent deterioration throughout the life of the loan. The Bonds shall conform In size to standard practice and contain the approved maturIty schedule for payment of princIpal. Security: General obligatIon of the Borrower, payable from an ad valorem tax to be levied on all taxable property wIthin the boundaries of the Borrower without lImItatIon as to time, rate or amount, or from any other funds legally available to the Borrower for payment of princIpal and interest on any of Its general obligation bonds. Date: September I, 1962 Denomination: $1,000 Interest Rate: Bond Numbers: 3-3/8% I - 226 Inclusive, Interest Payment Dates: First Payment March I, 1963, and semi-annually thereafter on September I and March I of each year. Maturities as of September I: Years Amounts Years Amounts 1964-66 $ 5,000 1980-83 $ 9,000 1967-71 6,000 1984-86 10,000 1972-76 7,000 1987-90 11 ,000 1977-79 8,000 1991 12,000 2 Place of Payment: Payable as to both principal and interest at a bank or trust company in the State of Alaska which is a member of the Federal Deposit Insurance Corporation or, at the option of the holder, at a bank or trust company in the Borough of Manhattan, New York, New York, in any coin or currency which Is legally acceptable on the respective dates of payments, for debts due the United States of America Registration Privileges: Principal only Redemption Provisions: Redeemable, at the option of the Borrower on and after September I, 1973, In whole or in part, In Inverse numerical and maturity order, on any interest payment date thereafter, upon not less than thirty (30) days prior notice, at par and ~ccrued Interest, plus a premium of one quarter (1/4) of one percent (1%) for each year, or fraction thereof from the date of redemption to the stated maturity of each bond to be redeemed. Such premium in any event shall not exceed three percent (3%) of the principal amount of any bond to be redeemed. Blocks of Maturities for Which Bids will be Accepted: For: (I) all maturities In the years 1964 through 1972; ~2) II II II II II 1973 II 1977; 3) II II II II II 1978 II 1982; (4) II II II II II 1983 II 1987; (5) II II II II II 1988 II 1991 ; and (6) the entire Issue. , 17 s;r:~.~ ~ . ~:~6~~O , ,Ic' '.{ ,[., t' 'I L,' 1 ..; tt I ( 1 ~ ~ j Jo. { II ':'-p'L,"" -d' , . .,.C,. rJ f !. '. ~, 'L 4 .... ' ( , ~ .1- I )~!'+r~y\I/,'.,. ~Lucr' ' . ') ./ y;V Hi;"'" ,)l, ,.' Constituting Part of the Loan Agreement Providing for the Financing an Construction " ~ f' I.:..r: of Public Works or Facilities Under Title II of the Housing Amendments of 1955 or \\.t< (Public Law 345, 84th Congress, as Amended) C. (j;,J \; ('/\1'" ~~r r HOUSING AND HOME FINANCE AGENCY COMMUNITY FACILITIES ADMINISTRATION TERMS AND CONDITIONS Section 1. Definitions. As used in these Terms and Conditions: "Government" means the United States of America or the Housing and Home Finance Agency. "Project" means the Public Works or Facilities covered by the Loan Agreement. "Loan Agreement" means the contract between the Government and the Borrower covering the Project and includes both these Terms and Conditions and other contract instruments. "Borrower" means the public entity designated in the Loan Agree- ment. "Bonds" mean the obligations which the Government has agreed to purchase under the Loan Agreement. "Project Costs" means the cost of construction work for the Proj- ect, cost of necessary architectural/engineering services, legal, administrative and clerical costs, cost of land acquisition, necessary travel expenses, costs imposed by the Government to reimburse it for its field expenses, interest during construction, and other necessary miscellaneous expenses, alIas de- termined by the Government. "Depository Bank" means a bank or trust company which is a mem- ber of the Federal Deposit Insurance Corporation. Section Z. Prerequisites to Government's Obligations. The Government shall be under no obligation to advance funds or to purchase any Bonds under the Loan Agreement if: (a) Representations. Any representation made by the Borrower to the Government in connection with the application or loan, shall be in- correct or incomplete in any material respect, or the Government determines that the Borrower has failed to proceed promptly with Project financing or construction; (b) Financial Condition. The financial condition of the Borrower shall have changed unfavorably in a material degree from its condition as theretofore represented to the Government; (c) Concurrence by Government. The Borrower, having submitted to the Government the documents mentioned in Section 13 hereof, shall have proceeded without having been advised by the Government that the same are satisfactory; it being the purpose of this provision to in- sure that no action will be taken in the development of the Project ~r wh~ch would result in legal or contractual violation rendering it im- possible for the Government to make the loan hereunder or for the parties to accomplish the objects of the Loan Agreement; (d) Prohibited Interests. If any official ofthe Borrower who is authorized in such capacity and on behalf of the Borrower to negotiate, make, accept or approve, or to take any part in negotiating, making, accept- ing, or approving any architectural, engineering, inspection, con- struction, materials, supply, or equipment contract or any subcontract in connection with the construction of the Project, shall become directly or indirectly interested personally in any such contract or subcontract, or if any official, employee, architect, attorney, engineer or inspector of or for the Borrower who is authorized in such capacity and on behalf of the Borrower to exercise any legislative, executive, supervisory or other functions in connection with the construction of the Project, shall become directly or indirectly interested per- sonally in any construction, materials, supply, equipment or insurance contract, in any subcontract or any other contract pertaining to the Project. Section 3. Purchase of Bonds. The Borrower shall initiate and prosecute to com- pletion all proceedings necessary to the authorization, issuance, and sale of the Bonds and to the security thereof. When the said proceedings have been completed to the point of but not including the delivery of the Bonds to the Government, the Borrower may file a requisition requesting the Government to purchase the Bonds. The requisition shall be supported by such data as the Government shall require to determine whether the Government is obligated under the provisions of the applicable Loan Agreement to honor such requisition. If the Government is so ob- ligated, it will purchase the Bonds covered by such requisition, within the limitations, however, specified in the Loan Agreement. Section 4. Legal Matters. The Borrower shall furnish the Government a transcript of proceedings for the authorization, issuance, sale and security of the Bonds evidencing that the Bonds, when delivered and paid for, will constitute binding and legal obligations, payable and secured in accordance with their tenor, and that all proceedings for the financing and the acquisition, construction and development of the Project preliminary to the delivery of the Bonds to the Government have been had and adopted in due time, form, and manner as required by law. Section 5. Security. The Borrower shall include in the proceedings for the authori- zation, issuance, sale and security of the Bonds, provisions for the payment of the principal of and interest on the Bonds and for'the security thereof of the nature required to assure such payment and to safeguard the loan hereunder, including, in case the Bonds are payable in whole or in part from any special sources of revenues, provisions designed to assure the production of such revenues and the application thereof to the extent required for the payment and security of the Bonds and interest thereon, including the maintenance of reasonable reserves. Section 6. Opinion of Bond Counsel. Simultaneously with the delivery of any of the Bonds to the Government, the Borrower shall furnish to the Government the ap- proving opinion of bond counsel who shall be satisfactory to the Government, and covering generally all of the Bonds and, specifically and unqualifiedly, the Bonds then being delivered to the Government. - 2 - ~ Section 7. Construction Financing. The Borrower shall make every effort to ob- tain interim financing from private sources. Prior to entering into formal agree- ments for such financing, the Borrower shall furnish the Government with (1) a satisfactory preliminary opinion of bond counsel; (Z) evidence of its ability to finance on reasonable terms the cost of the Project up to the time the Bonds are ready for delivery; and (3) evidence of the receipt of firm bids establishing that the Project can be constructed within the approved estimated cost thereof. In the event any loan under temporary financing shall become due prior to the time when the Bonds are ready for delivery, the Borrower may apply to and, provided that the Borrower is in compliance with the Terms and Conditions of this Loan Agree- ment, receive from the Government an advance against the Bonds in an amount sufficient to liquidate such temporary loan. Should the Borrower be able to demonstrate to the Government's satisfaction that interim financing on reasonable terms is not available, the Government will con- sider requests for advances in anticipation of the issuance of the Bonds. Requisi- tions for construction advances shall be accompanied by such supporting data as the Government may require. The Government will honor such requisitions in amounts and at times deemed by it to be proper. Any funds made available to the Borrower by the Government pursuant to this Sec- tion shall be repaid in full from the first proceeds derived from the sale of the Bonds, and shall bear interest at the rate specified for the Bonds in the Loan Agree- ment from the date made available to the date of repayment. Section 8. Prerequisites to Loan Disbursements. Prior to the Government dis- bursing any portion of the loan proceeds, the Borrower shall present satisfactory evidence that: (a) It has obtained, or can obtain, all land, rights-of-way, easements, permits, franchises, Federal, State, County, and Municipal approvals required in connection with the construction and operation of the Project, including approval of the final plans and specifications by the appropriate State authorities; (b) It has adopted a Bond Ordinance or Resolution, satisfactory in form and substance to the Government, and has obtained a preliminary approving opinion of bond counsel; (c) It has adopted an Ordinance or Resolution, satisfactory in form and substance to the Government, levying taxes or assessments, or establishing rates, charges, rules, and regulations relating to the services to be rendered by the Project, including provision for no free service; (d) It has deposited in the Construction Account such funds in addition to the loan proceeds as are necessary to construct the Project, and that the Project can be completed at a total cost satisfactory to the Government and within the amount of funds available therefor. Section 9. Construction Account. The Borrower shall set up in a Depository Bank, or with the fiscal agency of the Borrower fixed by law, a separate account or ac- counts (herein collectively called the "Construction Account") into which shall be deposited any temporary loans, Government advances, and proceeds from the sale - 3 - ~ of the Bonds (except accrued interest payments) and the additional funds, if any, required by the provisions of the Loan Agreement to be furnished by the Borrower in order to assure the payment of all Project Costs. Moneys in the Construction Account shall be expended only for such purposes as shall have been previously specified in the project cost estimates approved by the Government. Moneys in the Construction Account shall be secured by the Depository Bank in the manner prescribed by statutes relating to the securing of public funds. Where the moneys on deposit in the Construction Account exceed the estimated disbursements on account of the Project for the next 90 days, the Borrower may direct the De- pository Bank to invest such excess funds in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States Govern- ment, which shall mature not later than 18 months after the date of such investment and which shall be subject to redemption at any time by the holder thereof. The earnings from any such investments shall be deposited in the Construction Account by the Borrower. Any moneys remaining in the Construction Account after all costs of the Project have been paid shall be promptly used to the extent possible for the redemption of Bonds, and any residue shall be deposited in the account established for the payment of the principal and interest of the Bonds. Section 10. Payment of Costs--Additional Funds. The Borrower shall pay all Project Costs and furnish from sources other than the proceeds of the loan, and from sources and in a manner which will not jeopardize the security of the Bonds, the additional funds, if any, which will be sufficient to finance the total Project Costs. Section 11. Prompt Procedure--Economic Construction. The Borrower covenants and agrees that it will proceed promptly withall matters necessary to the financing and the development of the Project; and that the Project will be undertaken and developed in such manner that economy will be promoted in such development and in the construction work. Section 12. Approvals and Permits. The Borrower shall obtain approvals and per- mits required by law as a condition precedent to the acquisition, construction, development, and operation of the Project. Section 13. Submission of Proceedings, Contract and Other Documents. The Borrower shall submit to the Government such data, reports, records and docu- ments relating to the financing, construction, and operation of the Project and financial condition of the Borrower as the Government may require. Approval of the Government must be obtained prior to the assignment of any interest in or part of any contract relating to the Project. Section 14. Construction by Contract. All work on the Project shall be done under contract and every opportunity shall be given for free, open and competitive bidding for each and every construction, material, and equipment contract. The Borrower shall give such publicity by advertisement or calls for bids by it for the furnishing to it of work, labor, materials, and equipment as required by applicable law and as will provide adequate competition; and the award of each contract therefor shall be made, after approval by the Government to the lowest responsible bidder as soon as practicable; l'rovi-ied, that in the selection of equipment or materials the Bor- rower may, in the interest of standardization or ultimate economy, if the advantage of such standardization or such ultimate economy is clearly evident, award a - 4 - r contract to a responsible bidder other than the lowest in price. The Borrower shall obtain the concurrence of the Government before approving subcontracts relating to the Project. Section 15. Changes in Construction Contract. Any change in a construction con- tract shall be submitted to the Government for approval. Construction contracts shall include a provision specifying that the above requirement will be met. Section 16. Contract Security. The Borrower shall require that each construction contractor shall furnish a performance bond in an amount at least equal to 100 per- cent of his contract price as security for the faithful performance of his contract and also a payment bond in an amount not less than 50 percent of his contract price or in a penal sum not less than that prescribed by State, territorial, or local law, as security for the payment of all persons performing labor on the Project under his contract and furnishing materials in connection with his contract. The per- formance bond and the payment bond may be in one or in separate instruments in accordance with local law. Section 17. Insurance During Construction. The Borrower shall require that each of its construction contractors and his subcontractors shall maintain during the life of his contract Workmen's Compensation Insurance and Public Liability and Prop- erty Damage Insurance in amounts and on terms satisfactory to the Government. The Borrower shall maintain or require that each of its construction contractors shall maintain during the life of his contract Builder's Risk Insurance in amounts and on terms satisfactory to the Government. Section 18. Wage Rates. The Borrower shall require all of its contractors engaged in work on the Project to comply with any applicable State law governing the pay- ment of minimum rates of pay to workmen, including apprentices, employed on the Project. In the absence of any such State law, the Borrower shall compile, and submit to the Government for its approval, a list of prevailing rates of pay for all laborers and mechanics to be employed on the construction of the Project (which list shall be based upon the wage rates prevailing for the same classes of laborers and mechanics e.mployed in construction activities, similar in character to the Project in the area in which the Project is to be constructed). Upon obtaining the Government's approval of any such proposed minimum wage rates, the Bor- rower will include such list in' all contracts calling for work on the Project and require adherence thereto. The Borrower shall also require of its contractors that all such lists shall be posted at appropriate conspicuous points on the site of the Project. Unless otherwise required by law, wage rates need not be listed for non-manual workers, including executive, supervisory, administrative and clerical employee s. Section 19. Payment of Employees. The Borrower shall require of its contractors that all employees engaged in work on the Project be paid in full (less deductions made mandatory by law) not less often than once each week. Section 20. Wage Underpayments and Adjustments. The Borrower shall require of each of its contractors that, in cases of underpayment of wages by the contractor, the Borrower may withhold from such contractor out of payments due, an amount sufficient to pay workers employed on the work covered by his contract the differ- ence between the wages required to be paid under the contract and the wages actually paid such workers for the total number of hours worked and may disburse such amounts so withheld by it for and on account of the contractor to the respective employees to whom they are due. - 5 - ~'k;4 ,~"" Section 21. Anti-KickbackStatute. The so-called Anti-Kickback Statute, Public Law No. 324, 73rd Congress, approved June 13, 1934 (48 Stat. 1948 as amended), and the regulations issued pursuant thereto, are a part of the Loan Agreement, and the Borrower shall comply, and require each of its contractors employed in the construction, prosecution, or completion of the Project to comply therewith, and to cause his subcontractors to do likewise. Section 22. Accident Prevention. The Borrower shall require of its contractors that precaution shall be exercised at all times for the protection of persons (including employees) and property, and that hazardous conditions be guarded against or eliminated. Section 23. Supervision and Inspection. The Borrower shall provide and maintain on its own behalf competent and adequate architectural or engineering services covering the supervision and inspection of the development and construction of the Project. Section 24. Nondiscrimination. The Borrower shall require that there shall be no discrimination against any employee who is employed in carrying out the Project, or against any applicant for such employment, because of race, religion, color or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment adver- tising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The Borrower shall insert the foregoing provision of this Section in all its contracts for Project work and will require all of its contractors for such work to insert a similar provision in all sub- contracts for Project work; Provided, that the foregoing provision of this Section shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. The Borrower shall post at the Project, in conspicuous places available for employees and applicants for employment, notices to be provided by the Government setting forth the provisions of this nondiscrimination clause. Section 25. Payments to Contractors. Not later than the fifteenth day of each calendar month the Borrower shall make a partial payment to each construction contractor on the basis of a duly certified and approved estimate of the work per- formed during the preceding calendar month by the particular contractor, but shall retain until final completion and acceptance of all work covered by the particular contract a reasonable amount, specified in the contract, sufficient to insure the proper performance of the contract. Section 26. Audit and Inspection. The Borrower shall require ofits contractors that the Government's authorized representatives be permitted, and it will itself permit them to inspect all work, materials, payrolls, records of personnel, invoices of materials and other relevant data and records appertaining to the development of the Project; and shall permit the Government's authorized representatives to audit the books, records, and accounts of the Borrower appertaining to the loan and the development of the Project. Section 27. Government Field Expense. The Government will bill the Borrower for payment of the fee specified in the Loan Agreement to cover audit and inspec- tion costs and payment will be due from the first funds deposited in the Construc- tion Account. In the event of termination of the Loan Agreement through the sale of all of the Bonds to private purchasers, the Borrower shall be entitled to a refund of all or a proportionate part of the fee. The refund shall be in such an amount as the Government determines to be equitable under the circumstances. - 6 - ?i, ;;'l:~~t:li&',,;: ~1'~ 1e> :~,~~~"':" (,'. :,~...4:".lV1. ;<,,~ if, l" I i;i:~,;.;;i;I~,~:t,t~ ,:: ,>i '. 1;:~}~~~.)-,".n(Y.~"' l":'h.. , :~~ Section 28. Signs. The Borr~~;:,.hall cause to be erected;..~~lJte site of the ProjJi' ect, and maintained during ':~uction, signs satisfac~io the Governmen't identifying the Project and i~.~ng the fact that the Gov~.nt is participatint in the development of the Pro~. 'i tlf:o,ihl' ,.1 ?;:$;.~'::~i; ~~er -"~1'~ Section 29. Retention of Title"Jo' long as the Government holds any of the Bonds, the Borrower shall not dispose of its title to the Project or to any useful part thereof, including any facility necessary to the operation and use of the Project and the lands and interests in lands comprising the site of the Project. Section 30. Insurance on Completed Project. So long as the Government holds any of the Bonds, the Borrower shall insure the Project against such risks and in such amounts as may be required by the Government. Section 31. Operation of Project. The Borrower covenants that it will operate and maintain the Project or provide for the operation and maintenance thereof, to serve the objects and purposes for which the loan has been made available under the Federal law and the terms of the Loan Agreement. Section 32. Surety. The Borrower covenants that each of its officials or employees having custody of Project funds during acquisition, construction, development, and operation of the Project, shall be bonded at all times in an amount at least equal to the total funds in his custody at anyone time. Section 33. Proper Records and Books. The Borrower covenants that it will keep accurate financial records and proper books relating to the operation of the Project and other facilities the revenues of which are pledged to secure the Bonds, and such records and books shall be open to inspection by the Bondholders and their agents and representatives. The Borrower further covenants that not later than 90 days after the end of each fiscal year, it will furnish to any Bondholder who shall request same in writing, copies of audit reports prepared by an independent public accountant, reflecting in reasonable detail the financial condition and record of operation of the Borrower, the Project, and other pledged facilities. Section 34. Periodic Operating Statements. So long as the Government holds any of the Bonds, the Borrower shall furnish operating statements for the Project, and any facilities the revenues of which are pledged to payment of the Bonds, in such form and substance for such periods as may be requested by the Government. Section 35. Designation of Depository and Paying Agent. The Borrower agrees to obtain the Government's concurrence in the selection of the Paying Agent and Depository Bank, in which funds and accounts are to be established and maintained pursuant to the Loan Agreement, prior to the designation by the Borrower of such Paying Agent and Depository Bank. " Section 36. Investment of Funds. Moneys on deposit to the credit of accounts and funds established and maintained in conformity with the provisions of the Loan Agreement shall be invested by the Depository Bank, upon request by the Borrower, in direct obligations of, or obligations the principal of and the interest on which are guaranteed by, the United States Government. Where the Borrower is required to maintain fixed amounts in such accounts and funds. the investments shall be valued in terms of current market value as of June 30 and December 31 of each year. Section 37. Bond Redemption. So long as the Government holds any of the Bonds, it will waive the non-callable provisions, redemption premiums, and publication of notice of call applicable thereto. - 7 - ~ ,'" ~.~. ~ .. : ,~ .'~. ..~ .:'~ :'1;':~':, ection 38. Inter f third partie s, e Government directly intere compliance by Third Partie s. The L ing the holders from t be unde r no obligation said Agreement, to p rrower with any of its d eement is not for the benef time of any of the Bonds, a such parties, whether or n charges or expenses incide r obligations thereunder. Section 39. Interest of Members of or Dele ates to Con ress. No member of or delegate to t e Congress 0 t e United States shall be a mitted to any share or part of this Loan Agreement or to any benefit arising therefrom. Section 40. Bonus or Commission.' By execution of the Loan Agreement the Bor- rower represents that it has not paid and, also, agrees not to pay, any bonus or commission for the purpose of obtaining an approval of its application for the loan hereunder. Section 41. State or Territorial Law. Anything in the Loan Agreement to the con- trary notwithstanding, nothing in the Loan Agreement shall require the Borrower to observe or enforce compliance with any provision thereof, perform any other act or do any other thing in contravention of any applicable State or territorial law: Provided, That if any of the provisions of the Loan Agreement violate any applicable State or territorial law, or if compliance with the provisions of the Loan Agreement would require the Borrower to violate any applicable State or territorial law, the Borrower will at once notify the Government in writing in order that appropriate changes and modifications may be made by the Government and the Borrower to the end that the Borrower may proceed as soon as possible with the construction of the Project. 165681-P - 8 - FHA-Wash., D. C.