Res 2023-208R approving a Resolution by the Board of Directors of the Alliance Regional Water Authority authorizing the issuance of Alliance Regional Water Authority bond anticipation note (Regional Water Supply Contract Project), Series 2023

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Project Costs. The Authority shall deposit the net proceeds from the sale of the Note into the Project Fund as provided in this Resolution. Funds in the Project Fund shall be requisitioned for payment of the Sponsors' respective shares of Project Costs in accordance with a requisition in substantially the form set forth in Exhibit "C" attached hereto with such changes as approved by the Authority Representative. Upon payment of all Project Costs, any moneys remaining on deposit in the Project Fund shall be transferred to the Debt Service Fund. In the event the Project is not completed for any reason contemplated in the Contract or otherwise or any proceeds from the Note are not used for completion of the Project for any reason, any Note proceeds and earnings therein not used for completion of the Project shall be utilized to pay principal and/or interest on the Note or as otherwise authorized by law. Any surplus proceeds, including the investment earnings derived from the investment of monies on deposit in the Project Fund, from the Note remaining on deposit in the Project Fund after completing the Project, shall be used as authorized by law. Section 9. PAYMENT OF THE NOTE. While the Note is outstanding, the Executive Director of the Authority or other authorized Authority official, shall cause to be transferred to the Paying Agent/Registrar therefor, from Future Bond Proceeds (which may be on deposit in a Debt Service Fund or other appropriate fund or account), amounts sufficient to fully pay and discharge promptly each installment of interest on and principal of the Note as such installment accrues or matures, subject to the provisions of Section 7; such transfer of funds must be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Note at the close of the Business Day next preceding the date a debt service payment is due on the Note, subject to the provisions of Section 7. Section 10. INVESTMENTS. Funds held in any fund or account created, established, or maintained pursuant to this Resolution shall, at the option of the Authority, be invested in time deposits, certificates of deposit, guaranteed investment contracts, or similar contracting arrangements and/or as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, or any other law, and secured (to the extent not insured by the Federal Deposit Insurance Corporation) to the fullest extent required by the Public Funds Collateral Act, as amended, Chapter 2257, Texas Government Code. All interest and income derived from deposits and investments in any fund shall immediately be credited to, and any losses debited from,the fund from which such funds were derived. All such investments shall be sold promptly when necessary to prevent any default in connection with the Note. Section 11. ISSUANCE OF ADDITIONAL INDEBTEDNESS. While the Note is outstanding, the Authority agrees not to issue additional indebtedness without the consent of the Registered Owners thereof other than Future Bonds; provided, however, the Note may be refunded (pursuant to any law then available) upon such terms and conditions as the Board of the Authority may deem to be in the best interest of the Authority. Section 12. MAINTENANCE OF PROJECT - INSURANCE. The Authority covenants, agrees, and affirms its covenants that while the Note remains outstanding it will maintain and operate the Project with all possible efficiency and maintain casualty and other insurance on the properties of the Project and its operations of a kind and in such amounts 9 ARWA\BAN\2023:Authorizing Resolution