C150117 Contract

• Contract/PO #: C150117
• Contractor Name: Central Colorado Water Conservancy District
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: SB 03-110
• Loan Projects - Doc Type: Contract Documents

7. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes
of repayment of this loan, revenues levied for that purpose as authorized in Appendix 3
and any other funds legally available to the BORROWER, in an amount sufficient to pay
the annual payment due under this contract ("Pledged Revenues"). Further, the
BORROWER agrees to:

a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep
the Pledged Revenues in an account separate from other BORROWER revenues,
and warrants that these revenues will not be used for any other purpose.

b. Establish Security Interest. The BORROWER- has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Revenues. The CWCB shall have
priority over all other competing claims for said revenues, except for the liens of
the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt),
of the Project Summary, which sets forth the position of the lien created by this
contract in relation to any pre-existing lien(s).

c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the
BORROWER shall take all necessary actions consistent therewith during the term
of this contract to establish, levy and collect taxes as described in Appendix 3, in
amounts sufficient to pay this loan as required by the terms of this contract and
the Promissory Note, to cover all expenditures for operation and maintenance
and emergency repair services, and to maintain adequate debt service reserves,
including obtaining voterapproval, if necessary, of increases in the BORROWER'S
rate schedule or taxes, if applicable.

d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROWER shall deposit an amount equal to one-tenth of an
annual payment into its debt service reserve fund on the due date of its first
annual loan payment and annually thereafter for the first ten years of repayment of
this loan. In the event that the BORROWER applies funds from this account to
repayment of the loan, the BORROWER shall replenish the account within ninety
(90) days of withdrawal of the funds.

e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness
payable from the pledged revenues and having a lien thereon which is superior
to the lien of this loan. The BORROWER may 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 of the obligations of this contract, including,
but not limited to, being current on the annual payments due under this
contract and in the accumulation of all amounts then required to be
accumulated in the BORROWER'S debt service reserve fund;

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 this loan, the annual debt

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