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service reserve account created for any Parity Lien Bonds. The CWCB may not look to any general or other fund of the District for the payment of the principal of and interest on the Note or any other such amounts payable under the Loan Contract or the Note, except the Water Enterprise Fund and the Reserve Account, and neither the Note nor the Loan Contract shall constitute a debt or an indebtedness of the District within the meaning of any constitutional or statutory provision or limitation; nor shall they be considered or held to be general obligations of the District. Section 4. Water Enterprise Fund. There is hereby reaffirmed the Water Enterprise Fund, which shall be maintained by the District in accordance with the provisions of this Resolution. The District shall apply amounts on deposit in the Water Enterprise Fund as provided in the Loan Contract. Section 5. Maintenance of Water Activity Enterprise. The District hereby further irrevocably covenants and agrees with the CWCB that so long as the Note remains outstanding, the District has maintained and covenants to continue to maintain the System as an "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution, and as a "water activity enterprise" within the meaning of Title 37, Article 45.1, C.R.S.; provided, however, after calendar year 2012 the District may disqualify the System as an "enterprise" in any year in which said disqualification does not materially, adversely affect the enforceability of the covenants made by the District in the Financing Documents. In the event that the System is disqualified as an enterprise and the enforceability of the covenants made by the District in the Financing Documents is materially, adversely affected, the District covenants to immediately take all actions necessary to (i) qualify the System as an enterprise within the meaning of Article X, Section 20 of the Colorado Constitution and (ii) permit the enforcement of the covenants made in the Financing Documents. Section 6. Authorization to Execute Documents. The President, First Vice President, the Secretary and all other appropriate officers of the District, shall, and they are hereby authorized and directed to, take all actions necessary or desirable to effectuate the provisions of this Resolution, including, but not limited to, the execution of an such certificates and other documents as may be reasonably required by the CWCB or as are necessary and appropriate to effectuate the transactions described in this Resolution. The execution by the President, First Vice President, the Secretary or any other appropriate officers of the District of the District of any document authorized herein shall be conclusive proof of the approval by the District of the terms thereof. Section 7. Costs and Expenses. All costs and expenses incurred in connection with the execution and delivery of the Loan Contract and the Note shall be paid as provided in the Loan Contract, and such moneys are hereby appropriated for that purpose. Section 8. Ratification and Approval of Prior Actions. All actions heretofore taken by the officers and agents of the District and the members of the Board, not inconsistent with the provisions of this Resolution, relating to the authorization, execution and delivery of the Loan Contract and the Note are hereby ratified, approved, and confirmed. Section 9. Resolution Irrepealable; Amendments. After the Note has been executed and delivered by the District, this Resolution shall constitute a contract between the CWCB and 4814 -5244 -3407. 25 Appendix 3 to Loan Contract C150324