SEC Contract Filing

Filing Date: 2022-08-15

Document Content:
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<SEQUENCE>7
<FILENAME>ga2022c.htm
<DESCRIPTION>2022C
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 <div style="text-align: left; font-family: 'Times New Roman', Times, serif; font-size: 12pt; font-weight: bold;">REGISTERED</div>
 <div style="text-align: left;"><font style="font-size: 12pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">R-1</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 396pt">&#160;</font><font style="font-size: 12pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$3,200,000</font></div>
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 <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 12pt; font-weight: bold;">ARTESIAN WATER COMPANY, INC.</div>
 <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 12pt; font-weight: bold;">GENERAL OBLIGATION NOTE</div>
 <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 12pt; font-weight: bold;">(KIRKWOOD HIGHWAY WATER MAIN RENEWAL PROJECT)</div>
 <div style="text-align: center; font-family: 'Times New Roman', Times, serif; font-size: 12pt; font-weight: bold;">SERIES 2022C-DWSRF</div>
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 <div style="text-align: left; text-indent: 274.5pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">Final Maturity Date: February 1, 2044</div>
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 <div style="font-family: 'Times New Roman', Times, serif; font-size: 12pt;">Delaware Drinking Water State Revolving Fund, Delaware Department of Health &amp; Social Services, Division of Public Health</div>
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 <div style="text-align: justify; text-indent: -144pt; margin-left: 144pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">PRINCIPAL AMOUNT:Three Million Two Hundred Thousand Dollars ($3,200,000)</div>
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 <div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">ARTESIAN WATER COMPANY, INC., a corporation of the State of Delaware (hereinafter referred to as the "Company"), for value received
 hereby acknowledges itself indebted and promises to pay to the DELAWARE DRINKING WATER STATE REVOLVING FUND, or to any other registered owner hereof, the principal sum of THREE MILLION TWO HUNDRED THOUSAND DOLLARS ($3,200,000) or so much thereof as
 shall actually be advanced to the Company by the Delaware Drinking Water State Revolving Fund acting by and through Delaware Department of Health &amp; Social Services, Division of Public Health (the "Department") pursuant to the Financing Agreement
 dated as of August 12, 2022 (the "Financing Agreement") between the Company and the Department.</div>
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 <div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">This Note is being issued in order to provide funds to: (i) finance the replacement of 3,900 linear feet of asbestos cement water main
 and 500 feet of galvanized water main with 4,440 feet of ductile iron water main, renewal of 50 water services and 4 fire hydrants, all as more fully described in <font style="font-size: 12pt; font-family: 'Times New Roman', Times, serif;"><u>Exhibit
 A</u></font> to the Financing Agreement and (ii) pay certain administrative costs and costs of issuing this Note (collectively, the &#8220;Project&#8221;).&#160; Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in
 the Financing Agreement.</div>
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 <div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">The Company shall pay to the Department, on the principal amount drawn down and outstanding hereunder from the date(s) drawn, interest
 at the rate of 1.000% per annum and an administrative fee at the rate of 1.000% per annum (collectively, interest and the administrative fee are referred to herein as "Fee").&#160; Such Fee shall accrue starting on the date hereof (the "Closing") through
 the Final Maturity Date or prepayment in full hereof.&#160; During construction of the Project, the Company shall pay Fee on the principal amount then outstanding semiannually on each February 1 and August 1 (each, a "Payment Date").&#160; The Company shall
 pay Fee hereunder initially on February 1, 2023.&#160; The Company shall pay only Fee and no principal during the period commencing with the Closing through and including the Payment Date following the date on which the Project is actually completed
 (currently expected to be August 31, 2023 as of the Closing).</div>
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 <div style="text-align: justify; text-indent: 36pt; font-family: 'Times New Roman', Times, serif; font-size: 12pt;">The Company expects to complete the Project by August 31, 2023 (herein referred to as the &#8220;<font style="font-size: 12pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Amortization Start Date</font>&#8221;). This projected date of completion of the Project is subject to an extension if such extension is mutually agreed upon by the Department and the Company.</div>
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