Res 1986-116 - Laserfiche WebLink

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e. f. g. h. i. j. 3. Liquidate and dissolve pursuant to a plan that will convey to NPC all of COMPANY'S Assets no earlier than the date COMPANY discharges all of its debts and liabilities, but no later than September 30,2007. Refrain from increasing rates to finance the loan from NPC to COMPANY and refrain from increasing its rates for the remainder of the time it continues in operation unless necessary to operate and maintain the system and retire existing indebtedness and necessary future indebtedness. If NPC as the owner of COMPANY requires a change in the rates, any changes in the rates will be in accordance with the bylaws of NPC. Refrain from financing and constructing new water production, storage, transmission and distribution facilities unless deemed necessary by NPC to insure the viability of COMPANY'S operation. Any improvements shall be approved by NPC pursuant to its bylaws. Formulate and operate in accordance with an annual operations and maintenance budget to be completed prior to the budget year for which it is applicable. NPC may increase COMPANY'S debt pursuant to NPC'S bylaws. Pay no dividends and refrain from accumulating retained earnings greater than reasonable operating reserves and the entire amount of outstanding debts and liabilities including the promissory note in the amount of $308,700.00. If COMPANY receives profits at any time prior to the scheduled consummation of the transactions herein and the accumulation of these profits would result in retained earnings exceeding that limit, it shall apply all such profits to payoff all existing debts and liabilities. Allow the City of San Marcos in accordance with the Agreement between the City of San Marcos and COMPANY attached as Exhibit "e", the right to provide water service and to collect all revenues from new customers residing in any area annexed by the City of San Marcos that ïs also within the water service area certified to COMPANY by the Texas Water Commission or other successor governmental agency, and not being served by COMPANY. Water service by the City of San Marcos as described herein shall be provided in accordance with its then applicable water service rules, regulations and inside city limit rates and charges. SHAREHOLDERS represent and warrant the following: ( a) (b) (c) There is no litigation pending trial against COMPANY¡ SHAREHOLDERS own all outstanding Shares of stock of COMPANY; SHAREHOLDERS held their Shares of stock for more than six (6) months before their sale or redemption, and such 4.