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Section 4. Fund and Accounts. There is hereby reaffirmed the Water Activity Fund and there is hereby established the following accounts of the Water Activity Fund, which shall be maintained by the Town in accordance with the provisions of this Ordinance: the Project Account; the Note Account; and the Reserve Account. Section 5. Project Account. All moneys received from CWCB under the: Loan Contfact shall be credited to the Project Account shall be applied solely to. the payment of the Project Costs. Upon the determination of the Board that all Project Costs have been .paid or are determinable, any balance remaining in the Project Account (less any amounts necessary to pay Project Costs not then due and owing) shall be applied solely in accordance with the terms, of the Loan Contract, including without limitation provision A(5) thereof. . Section 6. Security for Payment of the Promissory Note; Flow of Funds. . (a) Pledge of Net Revenues. The Promissory Note shall constitute. an irrevocable and first lieriupon the Net Revenue, but not necessarily an exclusive such lien. The Net Revenue is: hereby pledged to the payment of the Promissory Note on a parity of the lien of the Parity Lien Bonds, . (b) Flow of Funds. The Town shall credit to the Water Activity Fund all Gross Revenue immediately upon receipt. The Town shall pay from the Water Activity Fund all Operation and Maintenance Expenses as they become due and payable. After such payment or the allocation of Gross Revenue to such payment, the Town shall apply the Net Revenue iri the following order of priority: . FIRST, to the credit of the Note Account, the amounts 'required by the Section hereof entitled "Note Account", and to the credit of any other bond account or subaccount. hereafter established for the payment of interest on the Parit)rLien Bonds and any Parity Lien Obligations issued in accordance with the Loan Contract; SECOND, to the credit of the Reserve Account, the amounts required by the Section hereof entitled "Reserve Account" and to the credit of any . other account hereafter established as a reserve account for the Parity Lien Bonds or any Parity Lien Obligations; THIRD, to the credit of any other fund or account hereafter established for the payment of Subordinate Lien Obligations, including any sinking fund, reserve fund or similar fund or account established therefor, the amounts required by the. resolution or other enactment authorizing issuance. of the Subordinate Lien Obligations; and FOURTH, to the credit of any other fund or account as may be designated by the Town, to be used for any lawful purpose, any moneys remaining in the Water Activity Fund after the payments and accumulations set forth in FIRST through TIllRD hereof 02-178969.2 5