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" Resolution" means this Resolution, including any amendments properly made hereto.
<br />"System" means all of the District's Works, water facilities and properties, now owned or
<br />hereafter acquired, whether situated within or without the District boundaries, including all
<br />present or future improvements, extensions, enlargements, betterments, replacements, or
<br />additions thereof or thereto, which facilities and properties comprise the District's Water
<br />Activity Enterprise.
<br />"Water Activity Enterprise Act" means Title 37, Article 45. 1, CRS.
<br />"Water Conservancy Act" means Title 37, Article 45, CRS.
<br />"Water Enterprise Fund" means the proprietary fund of the District designated herein as
<br />the "Water Fund," previously established by the District and reaffirmed by the provisions hereof
<br />for the accounting of propriety revenues and expenses of the System.
<br />"Works" means dams, storage reservoirs, compensatory and replacement reservoirs,
<br />canals, conduits, pipelines, tunnels, power plants, and any and all works, facilities,
<br />improvements, and property necessary or convenient for the supplying of water for domestic,
<br />irrigation, power, milling, manufacturing, mining, metallurgical, and all other beneficial uses.
<br />Section 2. Authorization. In accordance with the Constitution of the State of Colorado,
<br />the Water Activity Enterprise Act, and all applicable laws of the State of Colorado thereunto
<br />enabling, the Loan Contract and the Note are incorporated herein by reference and are hereby
<br />approved for the purpose of financing the costs of the Project. The President, First Vice
<br />President, the Secretary and all other appropriate officers of the District are hereby authorized
<br />and directed to execute and deliver the Loan Contract and the Note, in substantially the forms
<br />made available to the Board, with such changes, not inconsistent herewith, as are approved by
<br />the persons executing the same (whose signatures thereon shall constitute conclusive evidence of
<br />such approval); and the covenants, statements, representations and agreements contained in the
<br />Loan Contract and the Promissory Note are hereby approved and adopted as the covenants,
<br />statements, representations and agreements of the District. The accomplishment of the Project is
<br />hereby authorized, approved, and ordered and it is hereby determined that the Note matures at
<br />such time 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 lien on the
<br />Net Revenue of that part of the System comprising the Project, second in priority only to the
<br />LOPP, and an irrevocable first lien on the Net Revenue of the System other than the Project, but
<br />not exclusive such liens, for the payment of the Note, and such Net Revenue is hereby pledged to
<br />the payment of the Note. The Parity Lien Bonds have a lien on the Net Revenue which is on a
<br />parity with the lien granted pursuant to the Loan Contract. Notwithstanding the foregoing or
<br />anything else contained herein, the Note shall have no pledge of or lien or claim on any debt
<br />4814 -5244- 3407.24 Appendix 3 to Loan Contract C150324
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