Can the water system function financially as a separate entity?

As an example, GCU does not have any employees, vehicles or large equipment. The employees, vehicles, and equipment are associated with GCEC. GCU pays for their share of the overheads. Also, GCU does not meet the loan covenants required by our lending institutions to borrow capital needed to run the company. GCU borrows money through GCEC which guarantees the loan obligations.