1042.16 PAYMENT OF TAP-IN FEES.
   The fees required by Sections 1042.10, 1042.11 and 1042.15 are due and payable when a request for water service and a tap into the Municipal water system is filed with the appropriate official of the Municipality. The proper payment must accompany and be submitted with such a request for service, provided, however, that payment may be made in accordance with the provisions of this section.
   If the circumstances described in Section 1042.15(b) exist, then the fee required hereunder may be deferred and made payable in quarterly installments, provided that the owner of the property to be served signs an agreement with the Municipality in accordance with the following terms:
   (a)    The Director of Service shall file or cause to be filed in the miscellaneous records or other records, if applicable, of the County Recorder, for each property to which the conditions of Section 1042.15(b) apply, a statement that the terms of this section and Section 1042.15 are applicable if the owner of such property requests a tap into the Municipally owned water system. Such filing shall be made within ten days after the adoption by Council of a resolution to accept contractors' bids for the construction of any extension of the water system to the properties that abut, abound or are potentially served thereby, provided, however, that failure to make such filing shall in no way affect the duties and obligations arising from subsections (b) through (l) hereof.
   (b)    All agreements for deferred payments of the fee required hereunder shall accompany the request for water service and shall state the number of years over which the payments are to extend, provided that no payments shall extend beyond twenty years from the date of filing the request with the appropriate official of the Municipality.
   (c)    The principal amount of the deferred fee (unless paid in full under subsection (d) hereof shall be paid in substantially equal quarterly amounts, with the conditions that the initial payment must be made prior to the permit being issued and that the same must be at least equal to the basic fee set out in Section 1042.15(c)(1).
   (d)    The unpaid principal amount of the deferred fee may be prepaid in full at any time at the option of the property owner, without penalty, and upon prepayment in full, all interest charges, as provided in subsection (e) hereof shall cease.
   (e)    Interest on the outstanding principal amount of the deferred fee shall be computed at the lower of the rate of ten and one-half percent per year, or a rate equal to the average prime rate charged by the banks located in the Municipality, provided that the interest shall be determined at the time of the filing of the agreement provided for in this section and such rate of interest shall not be altered for the life of the agreement.
   (f)    Billings for both principal and interest shall be added to the quarterly water service billing of the Municipality.
   (g)    Water service shall be terminated by the Municipality to any property for which the quarterly charges required hereunder are not paid within thirty days.
   (h)    If the owner of any property subject to the provisions of this section sells, conveys or otherwise transfers such property, he or she shall, prior to such sale, conveyance or transfer, either pay the then outstanding principal amount of the deferred charges required under this section, plus accrued interest, or present to the appropriate Municipal official an agreement, as provided in this section, signed by the new or prospective owner of the property, requesting the continuation of the deferred payments for the remainder of the original period, in accordance with the terms and conditions of the original agreement. Such continuation agreement of the new or prospective owner shall be accompanied with a payment in an amount equal to the cost of filing the agreement in the office of the County Recorder, as required by subsection (j) hereof.
   (i)    None of the terms and conditions of the agreement shall be altered or amended during its life by either party thereto.
   (j)    Each agreement (including a continuation agreement as provided in subsection (h) hereof shall be recorded in the miscellaneous records of the office of the County Recorder, and the cost thereof shall be added to the first quarterly payment.
   (k)    An amount equal to the first quarterly payment shall be payable and due when an agreement is filed with the appropriate Municipal official, provided that no such payment is required when a continuation agreement, as provided in subsection (h) hereof, is filed.
   (l)    Each agreement (including a continuation agreement as provided in subsection (h) hereof) filed under the provisions hereof shall be approved by the Director of Service and no such agreement shall be valid until duly executed by the Director.