Agmt75 South Bayside System Aut - Silicon Valley Clean Water

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Agency reimbursed the Authority according to its respective allocated share of the costs of construction thereof based upon its respective proportionate ownership of capacity rights pursuant to Subdivision (b) of Section 5.6 prior to acquiring any further capacity rights. With regard to subsequent increments, no such rights shall accrue until advance full payment therefor has been made, and the corresponding increment has been constructed pursuant to Subdivision (b) of Section 5.6. In the event any one, or more than one, increment is not so constructed, all potential capacity rights pertaining thereto shall terminate, and any payments therefor shall be disposed of in accordance with said Subdivision (b) of Section 5.6. Wastewater system connection permits or other forms of entitlement to use treatment capacity within the limits of the maximum capacity rights allocated to each Agency shall conform to the financing requirements for each increment of Stage 2 of the Project as provided in Subdivision (b) of Section 5.6. Such permits or entitlements issued to wastewater system users shall not be transferable except between owners of the land for which they were issued; provided, however, that each Agency may require that such permits or entitlements and the capacity rights pertaining thereto shall expire for non-use within a specified term following the operative date of the increment ta which they pertain and that upon such expiration all treatment capacity rights thereunder revert to the issuing agency. No treatment capacity rights for any Substage of Stage 2 of the Project shall revert, or be relinquished to, or be acquired by, the Authority; provided, however, that inter-Agency transfers may be made subject to Commission approval as hereinabove and in Section 7.3 provided. (e) Limitations Exceeded. If the Authority shall notify any Agency in writing at any time that such Agency's use of the Joint Facilities has exceeded its maximum capacity rights, such Agency shalt immediately take steps to reduce its use of the Joint Facilities so as to be within its maximum capacity rights. If any such Agency is unable to do so, it may, with written approval of the Authority (i) purchase or lease capacity from any other Agency which has surplus or unused capacity rights or (ii) at its own expense, provide for modifications to pumping, conveyance or treatment facilities so as to accommodate its excess use of the Jaint Facilities. If any Agency fails to comply with the provisions of this Subdivision, the Authority may take any necessary action under Section 7.4 or Section 7.6." S BSA_J PASuppVl_03122013r 12r