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� � � Section 2. Securitv. As security for the loan to be made by the State, the City of Grand Junction, Colorado, will execute a warranty deed within thirty (30) days of the first advance of funds from the State which will convey to the State an un- divided fifty percent (50�) interest in 5866 feet of 24 inch diameter Plastic Irrigation Pipe, 100PSI, SDR 41, inclusive of all intake structures, incidentals, and appurtances, the pipe to be laid between the North Fork of Kannah Creek exist- ing diversion structure and Purdy Mesa and Juniata Reser- voirs. Section 3. Assurance. The City will provide revenues in the City water fund to insure that the North Fork Diversion Pipe- line is maintained and operated in good working order, as se- curity to the State and the City for their interests in the pipeline until, at least, the total loan obligation to the Colorado Water Conservation Board is discharged. In addition the City's obligation for repayment will not terminate upon loss of the pipeline as a result of fire or other hazards. Section 4. Utilitv Rates. The City of Grand Junction peri- odically sets rates for the operation and expansion of its water utility operation. The City agrees that it will main- tain rates sufficient to pay the annual indebtedness on the loan and to maintain the pipelin d working order as outlined in Section 3. Thes"� �+�r1 , are established and set aside in the Water Fund a e�aY� separ e and apart from Cit General Fund revenues. he � he Fund balance Y �? � �� of the Water Fund, not to e d`]��a]� rincipal and in- terest payment of this not ' 1 e'�estricted for the sole purpose of discharging the ' y s loan obligation and the State of Colorado will have conveyed to it a security inter- est in these restricted revenues to secure repayment of the debt. Section 5. Default In the event of default in the repayment of the debt to the 5tate and upon written notice from the State, the City , pursuant to its Charter, will take all nec- essary actions to levy any additional assessments to cure the default. Section 6. Sale and Transfer. The City agrees that it will not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the project or any portion there of so long as the annual installment required by the note remain unpaid, without the prior written occurrence of the State. Section 7. Repealer. All acts, orders, resolutions, ordi- nances, or parts thereof, of the City that are inconsistent or in conflict with this resolution are hereby repealed to