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<br />contract and by their representations herein, the CITY and the BORROWER shall be <br />estopped from asserting for any reason that the BORROWER is not authorized or <br />obligated to repay the loan money to the STATE as required by this contract. <br /> <br />b. Both the BORROWER and the CITY have full power and authority to enter into this <br />contract. The execution and delivery of this contract and the performance and <br />observance of its terms, conditions and obligations have been duly authorized by all <br />necessary actions of the BORROWER and the CITY. <br /> <br />c. The BORROWER and the CITY have not employed or retained any company or person, <br />other than a bona fide employee working solely for the BORROWER and/or the CITY, to <br />solicit or secure this contract. The BORROWER and the CITY have not paid or agreed <br />to pay any person, company, corporation, individual, or firm, other than a bona fide <br />employee, any fee, commission, percentage, gift, or other consideration contingent <br />upon or resulting from the award or the making of this contract. <br /> <br />d. The BORROWER is an enterprise legally created and maintained in compliance with S <br />37-45.1-101, et seQ., C.R.S., and Article X, Section 20 of the Colorado Constitution, <br />and has authority to enter into this contract with the STATE. The BORROWER and/or <br />the CITY shall immediatelYfiotify t. .he SW.. :~n."Ift tl jf the circumstances which <br />formulate the basis of this warranty chan~,a.J."'" <br /> <br />e. The BORROWER and the c.ITY.ag.r,.,e. e not to. te~Elt1r di5o!ve the BORROWER, nor <br />otherwise adversely affect the BOR art>\tSl ~ during the term of this <br />contract. <br /> <br />f. The specific revenues to be pledged to repay the STATE under this contract shall be <br />water user charges, the establishment of which have been authorized by resolution <br />of the CITY. Such revenues are also pledged to the payment of the CITY'S 1994 <br />SERIES BONDS on a parity with this loan. The BORROWER hereby pledges sufficient <br />annual revenues to pay the annual installment amount pursuant to the Promissory <br />Note provisions of this contract. <br /> <br />10. Pledge of revenues. The BORROWER hereby irrevocably pledges to the STATE, for <br />purposes of repayment of this loan, water system revenues levied for that purpose as <br />authorized by resolution of the CITY. Further, the CITY and the BORROWER agree to: <br /> <br />a. Keep pledged revenues separate. The CITY and the BORROWER shall set aside <br />and keep the pledged revenues in an account separate from other CITY or <br />BORROWER revenues, and warrant that these revenues will not be used for any other <br />purpose. <br /> <br />b. Security interest in pledged revenues. To provide a security interest to the STATE <br />in the pledged revenues so that the STATE shall have priority over all other competing <br />claims for said revenues, except for the CITY'S 1994 Series Bonds, the BORROWER <br />has duly executed a Security Agreement, attached hereto as Appendix 4 and <br />incorporated herein. <br /> <br />c, Rate Covenant. Pursuant to its home rule powers, and as authorized by their <br />ordinances, the CITY and/or the BORROWER shall take all necessary actions <br /> <br />City of Love.land and City of Loveland, <br />Colorado, Water Enterprise <br /> <br />Page7of15 <br />