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• 0 <br />-� and all other appropriate officers of the District are hereby authorized and directed to execute <br />and deliver the Loan Contract and the Note, in substantially the forms made available to the <br />Board, with such changes, not inconsistent herewith, as are approved by the persons executing <br />the same (whose signatures thereon shall constitute conclusive evidence of such approval); and <br />the covenants, statements, representations and agreements contained in the Loan Contract and <br />the Promissory Note are hereby approved and adopted as the covenants, statements, <br />representations and agreements of the Town. The accomplishment of the Project is hereby <br />authorized, approved, and ordered and it is hereby determined that the Note matures at such time <br />not exceeding the estimated life of the Project. <br />Section 3. Pledge and Lien for Payment of Note and Amounts Payable Pursuant to <br />Loan Contract. The principal of and interest on the Note and any other amounts payable <br />pursuant to the Note and the Loan Contract, including, without limitation, amounts required to <br />fund the Reserve Account, the loan service fee payable pursuant to Section A.1. of the Loan <br />Contract, any contract amendment service fees payable pursuant to Section A.2. of the Loan <br />Contract and any late charges payable pursuant to Section 4 of the Note, shall be payable only <br />out of Net Revenue. Pursuant to the Loan Contract, the District grants an irrevocable and first <br />lien on the Net Revenue, but not an exclusive such lien, for the payment of the Note, and the Net <br />Revenue is hereby pledged to the payment of the Note. The Parity Lien Bonds have a lien on the <br />Net Revenue which is on a parity with the lien granted pursuant to the Loan Contract. <br />Notwithstanding the foregoing or anything else contained herein, the Note shall have no pledge <br />of or lien or claim on any debt service reserve account created for any Parity Lien Bonds. The <br />CWCB may not look to any general or other fund of the Town for the payment of the principal <br />of and interest on the Note or any other such amounts payable under the Loan Contract or the <br />Note, except the Water and Sewer Enterprise Fund and the Reserve Account, and neither the <br />Note nor the Loan Contract shall constitute a debt or an indebtedness of the Town within the <br />meaning of any constitutional or statutory provision or limitation; nor shall they be considered or <br />held to be general obligations of the Town. <br />Section 4. Water and Sewer Enterprise Fund. There are hereby reaffirmed the Water <br />and Sewer Enterprise Fund, and within such fund the Water Fund and the Sewer Fund, which <br />shall each be maintained by the.Town in accordance with the provisions of this Resolution. The <br />Town shall apply amounts on deposit in the Water Fund of the Water and Sewer Enterprise Fund <br />as provided in the Loan Contract, the 1999 CWCB Loan Contract, the 2009 CWRPDA Loan <br />Agreement, the 2011 CWRPDA Loan Agreement and the resolutions authorizing the issuance of <br />the Parity Lien Bonds. <br />Section 5. Maintenance of Water Activity Enterprise. The Town hereby further <br />irrevocably covenants and agrees with the CWCB that so long as the Note remains outstanding, <br />the Town has established and covenants to continue to maintain the System as an "enterprise" <br />within the meaning of Article X, Section 20 of the Colorado Constitution, and as a "water <br />activity enterprise" within the meaning of Title 37, Article 45. 1, C.R.S.; provided, however, after <br />calendar year 2011 the Town may disqualify the System as an "enterprise" in any year in which <br />said disqualification does not materially, adversely affect the enforceability of the covenants <br />made by the Town in the Financing Documents. In the event that the System is disqualified as <br />.� an enterprise and the enforceability of the covenants made by the Town in the Financing <br />Documents are materially, adversely affected, the Town covenants to immediately take all <br />actions necessary to (i) qualify the System as an enterprise within the meaning of Article X, <br />48194015- 3614.1 <br />