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7. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the <br />BoRROwER shall submit to the CWCB a letter from its bond counsel stating that it is the <br />attorney's opinion that <br />a. the contract has been duly executed by officers of the BoRROw�R who are duly <br />elected or appointed and are authoriaed to execute the contract and to bind the <br />BORROWER; <br />b. the resolutions or ordinances of the BURROWER authorizing the execution and <br />delivery of tt�e canfr�cf were duly �dnpted �y the governing b�die� of the <br />BORROWER; <br />c. there are no provisions in the Colorado Constitution or any other state or local law <br />that prevent this contract from binding the �BORROWER <br />d. the conVact will be valid �nd binding against th� BoRROwER if ent�r�d into by the <br />CWCB; and <br />e, the election held by the Borrower to obtain voter approval of this loan met all <br />requirements of the Colorado Constitution or any other state or local law. <br />8. Pledge of revenues. The BoRROw�R iRevocably pledges to the CWCB, for purposes <br />of repayment of this loan, revenues levied for that purpose as authori�ed in Appe�d'oc 3 <br />and any other funds legally available to the BoRROwER, in an amount sufficient to pay <br />the annual payment due under this contract ("Pledged Revenues°). Further, the <br />BoRROw�R agr�es to: <br />a. Segregation of Pledged Revenues. The BoRROwER shall set aside and keep the <br />Pledged Revenues in an account separate from other BoRROw�R revenues, and <br />warrants that these revenues will not be used for any other purpose. <br />b. Establish Security Intere�t. The �ORROWER has duly executed a S�GUrity <br />Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a <br />security interest to the CWCB in the Pledged Revenues. The CWCB shall have <br />priority over all other competing claims for said revenues, except for the liens of <br />the BORROWER existing loans as listed in Section 5(Schedule of Existing Debt), of <br />the PrQject Summary, which sets forth the position of the lien created by this <br />contract in relation to any existing lien(s). <br />c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the <br />BoRROwER shall take all necessary actions consistent therewith during the term of <br />this contract to establish, levy and collect rates, charges and fees as described in <br />Appendix 3, in amounts sufficient to pay this loan as required by the term� of this <br />contract and the Promissory Note, to cover all e�enditures for operation and <br />mainte�ance and emergency repair services, and to maintain adequate debt <br />service reserves, including obtaining voter approval, if necessary, of increases in <br />th@ BORROWER rate schedule or taxes, if applicable. <br />d. Debt Service Reserve Account To establish and maintain the debt service <br />reserve account, the BoRROwER shall deposit an amount equal to one-tenth af an <br />annual payment into its debt service reserve fund on the due date of its first annual <br />Loan Contract C150276 <br />Page 3 of 11 <br />