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, ,., <br />- ~ ~ . ~ <br />~ (ii) ,the loan funds will be used to permit <br />benefitted property owners to finance Sewer Assessments by <br />the Public Agency which are of general application; <br />(iii) the Public Agency will not use the Advances or <br />Contract repayments in any manner which would cause the <br />Departinent's bonds to be "arbitrage bonds" under the Internal <br />Revenue Code. <br />(6) All a5sessments which are deferred under the. <br />Assessment Deferral Loan Program will be Sewer Assessments. <br />L. Default and Remedies. <br />(1) It shall be considered a default under this Agree- <br />ment if: (i) the Public Agency withdraws money in the Assessment <br />Deferral Account for pu-rposes not expressly authorized by this <br />Agreement; (ii) the Public Agency fails to obtain properly exe- <br />cuted Contracts; (iii) the Public Agency fails to perform its <br />duties under Section II(H) of this Agreement, or <br />Agency fails to perform any other duties hereunder,Vandhsuchblic <br />failure continues for a period of 30 days after the Public Agency <br />receives written notice from the Department of the failure. <br />Hbwever, it sfiall not constitute a defaulf under clause (iv) <br />above if the Public Agency.pxomptly commences and continues <br />action to correct'the failure, and correction cannot reasonably <br />be achieved within 30~days after notice is received. Notwith- <br />standifig any other provision of this Agreement; it shall not <br />constitute a d`e~fault hereunder if the Public Agency fails to pay <br />the amounts due the Department hereunder solely because property <br />owners fail 'to pay to the Public Agency the amounts due under <br />Contracts with the Public Agency. <br />(2) Upon tHe occurrence of a default, the Department <br />may: <br />(i) demarid the immediate return of any Advances <br />which have not been disbursed by the Public Agency in <br />accordance with this Agreement; <br />(ii) refuse to make additional Advances to the <br />Public Agency; and <br />(iii) take any other action at law or in equity to <br />enforce the Department's rights hereunder. <br />M• Miscellaneous. <br />(1) Notices. All notices and reports required by this <br />Agreement shall be given to the parties at the following <br />addresses: (a) if to Ehe,Public Agencys City of Eugene, 858. <br />Pearl Street, Eugene; Oregon 97401, Attention: Public Works <br />~ Page 7-- Asse:ssment Deferral Loan Agreement <br />