C150152 Contract - Laserfiche WebLink

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ADDITIONAL BONDS CERTIFICATE IT IS HEREBY CERTIFIED by the undersigned Section Chief of the Colorado Water Conservation Board ("CWCB") that: 1. The Town of New Castle, Colorado, acting by and through the Town of New Castle Water and Sewer Enterprise (the `Borrower") and the CWCB entered into a Loan Contract, dated June 25, 2004 (the "CWCB Loan Contract") in connection with a loan in the original principal amount of $707,000 from CWCB to the Borrower. 2. The CWCB Loan Contract is secured solely with the water system revenues of the Borrower (the "Pledged Revenues"). 3. The CWCB Loan Contract provides in Section A(8)(e) that the Borrower shall issue parity debt only with the prior written approval of the CWCB, provided that (i) the Borrower is currently and at the time of the issuance of the parity debt in substantial compliance with all the obligation of the CWCB Loan Contract, including but not limited to, being current on the annual payments due under the Loan Contract and in the accumulation of al1 amounts then required to be accumulated in the Borrower's debt service reserve fund; and (ii) the Borrower provides to the CWCB a Parity Certificate from an independent certified public accountant certifying that, based on an analysis of the Borrower's revenues, for 12 consecutive months out of the 18 months immediately preceding the date of issuance of such parity debt, the Borrower's revenues are sufficient to pay its annual operating and maintenance expenses, annual debt service on all outstanding indebtedness having a lien on the pledged revenues, including the CWCB Loan Contract, the annual debt service on the proposed indebtedness to be issued, and all required deposits to any reserve funds required by the CWCB Loan Contract or by the lenders of any indebtedness having a lien on the pledged revenues. 4. The Borrower intends to enter into a Loan Agreement, dated as of May 1, 2008 (the "CWRPDA Loan Agreement") with the Colorado Water Resources and Power Development Authority ("CWRPDA") in connection with a loan in the original principal amount of $8,247,172 from CWRPDA to the Borrower. 5. The CWRPDA Loan Agreement is secured by revenues from both the water and sewer system revenues of the Borrower. 6. Attached is a certificate from an independent certified public accountant which modifies the requirements set forth in paragraph 3 above in order to account for the fact that the CWRPDA Loan Agreement is not secured solely by water system revenues of the Borrower. 1 PUBFIN~833385.1