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c. Debt Service Reserve Account. The BoRROwER shall deposit an amount equal to <br />one-tenth of an annual payment into its debt service reserve account on an annuai <br />basis for the first ten years of this loan. In the event that the Borrower applies funds from <br />this account to repayment of the loan, the Borrower shall replenish the account as soon as <br />practicable under law. <br />d. Additional Debts or Bonds. The BoRROwER shall not issue any indebtedness payable <br />from the pledged revenues and having a lien thereon which is superior to the lien of this <br />loan. The BoRROwER acknowledges and understands that it may issue parity debt only <br />after obtaining prior written approval from the CWCB.. <br />9. Collateral. Part of the security provided for this loan shall be an undivided one hundred <br />percent (100%) interest in the following, hereinafter referred to as Co�u�TEw�,�: 23.54 acre- <br />feet of Antero Reservoir water, evidenced by Account No. 002430 on the records of the <br />Denver Water Department and by Antero Reservoir Certificate No. 1037,and 27.39 acre- <br />rights of High Line Canal water, evidenced by Account No. 008940 on the records of the <br />Denver Water Department, and any additional water rights to be purchased by the <br />BoRROwER as they become available. The BoRROwER has executed and delivered a Deed of <br />Trust, Security Agreement and Assignment of Certificate, attached hereto as Appendix C <br />and incorporated herein, to convey a security inter 'n the water rights it currently owns to <br />the STATE Contemporaneously with clos' n chase of the additional water rights, <br />th BORROWER Shall execute a Deed curit greement and Assignment of <br />Certificate, using the same forms attac eret dix C, to convey a security <br />interest in the water rights to the STATE t TATE and the BORROWER <br />interests in the Co��,aTEwa�, the BoR�(C1�h�m the following conditions: <br />a. The BoRROwER shall have the ce�lticates issued in the BORROWER name, with the <br />CWCB identified on the certificates as a lienholder. <br />b. The BoRROwER shall retain both the responsibility for paying assessments on and the <br />privilege of voting said shares. <br />c. The BoRROwER shall record the Deeds of Trust contemporaneously with the BoRROwER's <br />deeds as it acquires the water rights, and shall execute and deliver to the STaTE the <br />Security Agreements and Assignments of Certificates upon closing on each purchase of <br />the water rights. <br />10. Collateral during repayment. Except for any pledges to Denver Water Department, the <br />BORROWER Sf1aII not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or <br />otherwise dispose of the Co�u�TERa� for this loan, including the revenues pledged to repay <br />the loan herein, so long as any of the principaf, accrued interest, and late charges, if any, on <br />this loan remain unpaid, without the prior written concurrence of the SrArE. In the event of <br />any such sale, transfer or encumbrance without the STATE's written concurrence th@ STATE <br />may at any time thereafter declare all outstanding principal and interest on this loan <br />immediately due and payable. <br />11. Remedies for default. Upon default in the payments herein set forth to be made by the <br />BORROWER or default in the perfo;�mance by the BoRROwER of any covenant or agreement <br />contained herein th@ STATE at its option, may: <br />Chatfield South Water District Page 5 of 11 <br />