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�'1 9. The Borrower agrees that pursuant to its statutory authority, it shall adjust its revenues from water user and storage fees from time to time as necessary and at the request of the State to provide for adequate management, operation and maintenanc�, emergency repair services, obsolescence reserves, maintenance of the reserve escrow account, and to assure its ability to make repayment of the loans under this Contract. 10. The Borrower and the State agree that the specific revenues to be pledged to repay the State under this Contract shall be limited to water user charges and storage fees, the establishment of which have been authorized by resolution of the Borrower. The Borrower hereby pledges sufficient annual revenues to pay the annual installment amount and maintain the reserve escrow account pursuant to ¶5 of this Project Contract, and hereby agrees to establish a separate account into which all such moneys shall be deposited. The Borrower warrants that the Platoro Reservoir Enterprise was lawfully created and will be maintained in compliance with §37-45.1-101, et sea•, C.R.S., and Article X, Section 20 of the Colorado Constitution, and has authority to enter into this Contract with the State. The District and the Enterprise shall immediately notify the State in writing if the circumstances which formulate the basis of this warranty change. The Borrower warrants ntities have duly passed a resolution by their respectiv f Directors, authorizing the Borrower to enter into this ract the State to borrow the principal sum of Three d F Thousand Dollars ($350,000.00); to fix an e s and fees sufficient to pay off the loan made und� t i Contract and the Fifty Thousand Dollars ($50,000.00) loan under the Computer Modelling Contract, pursuant to the terms of this Contract; to set aside sufficient revenues each year to pay the annual installment and maintain the reserve escrow account in a special fund separate and apart from other revenues of the Borrower; to sign a security interest in the revenues pledged herein in favor of the State to secure repayment; and to repay these loans to the State. Copies of such security interest (Uniform Commercial Code-Security Agreement and Uniform Commercial Code-Financing Statement) are attached hereto as Appendices D and E, respectively, and incorporated herein as if set out in full by this reference. The Boards' Resolution is attached hereto as Appendix C and incorporated herein by this reference. The actions of the Borrower adopting the Resolution and executing the security agreement are conditions precedent to performance by the State under this Contract. The Borrower warrants that in the event of a default by the Borrower in the repayment of its obligations hereunder to the State, and upon written notice thereof from the State, the Borrower shall immediately take all necessary actions to establish 7