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10. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 11. Pledge Of Revenues. The BORROWER hereby irrevocably pledges to the STATE for purposes of repayment of this loan revenues from the BORROWER'S sale of water and power and from taxes and assessments levied for that purpose as authorized by Article 45, Title 37, C.R.S. and by the BORROWER'S resolutions. Furthermore, BORROWER agrees that a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees that the pledged revenues shall be set aside and kept in an account separate from other BORROWER revenues, and warrants that these revenues shall not be used for any other purpose, except for repayment of the BORROWER'S General Obligation (Limited Tax) Water Conservancy Refunding Bonds, Series 1993, and the BORROWER'S loans from the STATE under Loan Contracts C153491 and C153330. b. Establish parity status for this loan. The STATE and the BORROWER recognize that the BORROWER has also pledged said revenues to repay the BORROWER'S General Obligation (Limited Tax) Water Conservancy Refunding Bonds, Series 1993 ("1993 Bonds"), and the BORROWER'S loans from the STATE under Loan Contracts C153330 and C153491. The BORROWER shall meet the requirements of its resolution authorizin issuance of the 1993 Bonds (1993 Bond Resolution") to establish parity status of t . with~e 1993 Bonds, and shall provide the STATE with a copy of the required~:' om.-.L~ ~ endent certified public accountant, which is attached hereto as APpend;~ 1n~~V erein. c. Establish Security Interest. The BORRO'~ ~I execute a Security Agreement, attached hereto as Appendix E and incorporat~~~o convey a security interest to the STATE in the pledged revenues so that the STAT~~ve priority over all other competing claims for said revenues, except for the BORRowER's'lredges of revenues to repay its 1993 Bonds, with which this loan shall have parity status, and to repay the BORROWER'S loans from the STATE under Loan Contracts C153330 and C153491. d. Assessments For Repayment Of The Loan. Pursuant to its statutory authority and decree of incorporation, and as authorized by its resolution, the BORROWER shall take all necessary actions consistent therewith to levy taxes and assessments and to establish and collect rates and charges for the sale of water and power in amounts sufficient to pay this loan as required by the terms of this contract and the promissory note. In the event the taxes and assessments and water and power rates and charges levied and charged by the BORROWER become insufficient to assure such repayment to the STATE, the BORROWER shall immediately take all necessary action consistent with its statutory authority, its decree of incorporation, and resolution, including, but not limited to, levying additional taxes and assessments and raising the rates and charges for the sale of water and power to raise sufficient revenue to assure repayment of the loan to the STATE. e. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory authority, decree of incorporation, and resolutions, the BORROWER shall levy assessments from time to time as necessary to provide sufficient funds for adequate operation and maintenance, emergency repair services, obsolescence reserves and debt service reserves. BORROWER shall deposit an amount equal to one-tenth of an annual payment into its debt service reserve fund on an annual basis for the first ten years of this loan. 16. Remedies For Default. Upon default in the payments herein set forth to be made by the BORROWER, or default in the performance of any covenant or agreement contained herein, the STATE, at its option, may: Upper Yampa Water Conservancy District Page 4 of 10