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408
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<br />Said sum of $9,634,000.00 has been committed to and by Grantee for such
<br />project development costs.
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<br />Grantor has agreed to grant the Grantee a sum not to exceed $1,426,000.00
<br />or 12.89 percent of said development costs, whichever is the lesser, subject
<br />to the terms and conditions established by the Grantor. Provided, however,
<br />that the proportionate share of any grant funds actually advanced and not
<br />needed for grant purposes shall be returned immediately to the Grantor.
<br />The Grantor may terminate the grant in whole, or in part, at any time before
<br />the date of completion, whenever it is determined that the Grantee has failed
<br />to comply with the conditions of the grant.
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<br /> NOW, THEREFORE, In consideration of said grant by Grantor to Grantee,
<br />to be made pursuant to Section 306(a) of the Consolidated Farm and Rural
<br />Development Act for the purpose only of defraying a part not to exceed
<br />12.89 percent of the development costs, as defined by applicable Farmers
<br />Home Administration instructions.
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<br />GRANTEE AGREES THAT GRANTEE WILL:
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<br /> A. Cause said project to be constructed within the total sums available
<br />to it, including said grant, in accordance with the project plans and
<br />specifications and any modifications thereof prepared by Grantee and approved
<br />by Grantor.
<br /> B. Permit periodic inspection of the construction by a representative
<br />of Grantor during construction.
<br /> C. Manage, operate and maintain the system, including this project if
<br />less than the whole of said system, continuously in an efficient and
<br />economical manner.
<br /> D. Make the services of said system available within its capacity to
<br />all persons in Grantee's service area without discrimination as to race,
<br />color, religion, sex, national origin, age, marital status, or physical
<br />or mental handicap (possess capacity to enter into legal contract for
<br />services) at reasonable charges, including assessments, taxes, or fees in
<br />accordance with a schedule of such charges, whether for one or more classes
<br />of service, adopted by resolution date October 3, 1983, as may be modified
<br />from time to time by Grantee. The initial rate schedule must be approved
<br />by Grantor. Thereafter, Grantee may make such modifications to the rate
<br />system as long as the rate schedule remains reasonable and nondiscriminatory.
<br /> E. Adjust its operating costs and service charges from time to time
<br />to provide for adequate operation and maintenance, emergency repair reserves,
<br />obsolescence reserves, debt service and debt service reserves.
<br /> F. Expand its system from time to time to meet reasonably anticipated
<br />growth or service requirements in the area within its jurisdiction.
<br /> G. Provide Grantor with such periodic reports as it may require and
<br />permit periodic inspection of its operations by a representative of the
<br />Grantor.
<br /> H. To execute Form FmHA 400-1, "Equal Opportunity Agreement," and to
<br />execute Form FmHA 400-4. "Nondiscrimination Agreement," and to execute any
<br />other agreements required by Grantor which Grantee is legally authorized to
<br />execute. If any such form has been executed by Grantee as a result of a
<br />loan being made to Grantee by Grantor contemporaneously with the making of
<br />this grant, another form of the same type need not be executed in connection
<br />with this grant.
<br /> I. Upon any default under its representations or agreements set forth
<br />in this instrument, Grantee, at the option and demand of Grantor, will
<br />repay to Grantor forthwith the original principal amount of the grant
<br />stated hereinabove, with the interest at the rate of 5 percentum per annum
<br />from the date of the default. Default by the Grantee will constitute
<br />termination of the grant thereby causing cancellation of Federal assistance
<br />under the grant. The provisions of this Grant Agreement may be enforced
<br />by Grantor, at its option and without regard to prior waivers by it of
<br />previous defaults of Grantee, by judicial proceedings to require specific
<br />performance of the terms of this Grant Agreement or by such other proceedings
<br />in law or equity, in either Federal or State courts, as may be deemed
<br />necessary by Grantor to assure compliance with the provisions of this Grant
<br />Agreement and the laws and regulations under which this grant is made.
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