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hereby pledged for the payment thereof. Pursuant to its statutory authority, the election held within the District on November 4, 2008, and as permitted by law, the BoRROwER shall cause to be levied on all of the taxable property within the DISTRICT in addition to all other taxes, direct annual taxes in each of the years 2009 to 2028, inclusive, without limitation of rate and in amounts sufficient, when combined with any other legally available moneys of the BoRROwER, to pay when due the annual payment due under this contract. d. Additional Debts or Bonds. The BORROWER shall not issue any other 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 subject to the conditions listed in subsection (i) and (ii) below; provided, however, that nothing herein shall be construed as prohibiting or restricting the right of the BORROWER to incur indebtedness payable from sources other than the Pledged Revenues, including without limitation indebtedness payable from tax levies which are in addition to the levy imposed pursuant to this contract, or to incur additional indebtedness in the total aggregate principal amount permitted by the approving debt election held within the DisTRicT on November 4, 2008. 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 annuai 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 issuanc� 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 service on the proposed indebtedness to be issued, and all required deposits to any reserve funds required by this contract or by the lender(s) of any indebtedness having a lien on the pledged revenues. The analysis of revenues shall be based on the BORROWER'S current rate structure or the rate structure most recently adopted. No more than 10% of total revenues may originate from tap and/or connection fees. e. Annual Statement of Debt Coverage. Each year during the term of this contract, the BoRROwER shall submit to the CWCB an annual audit report and a certificate of debt service coverage from a Certified Public Accountant. Loan Contract C150274 Page 4 of 11 1236811 \1216151.7