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c. The DISTRICT and the BORROWER have not employed or retained any company or <br />person, other than a bona fide employee working solely for the BORROWER or the <br />DISTRICT, to solicit or secure this contract and have not paid or agreed to pay any <br />person, company, corporation, individual, or firm, other than a bona fide employee, <br />any fee, commission, percentage, gift, or other consideration contingent upon or <br />resulting from the award or the making of this contract. <br />d. The Mancos Water Conservancy District Water Activities Enterprise is an <br />enterprise legally created and maintained in compliance with § 37- 45.1 -101, et sea., <br />C.R.S., and Article X, Section 20 of the Colorado Constitution, and has authority to <br />enter into this contract with the STATE. The BORROWER and /or the DISTRICT shall <br />immediately notify the STATE in writing if the circumstances which formulate the <br />basis of this warranty change. <br />e. The DISTRICT and the BORROWER warrant that the security identified in the Pledge <br />of Revenues and Collateral Provisions of this contract is not encumbered by any liens <br />of any party other than the STATE or in any manner. <br />7. Pledge of revenues. The DISTRICT WutnM WER gree that the specific revenues <br />to be pledged to repay the STATE shall inclu , it d to, water rates, fees and <br />charges levied and collected by the DISTRICT a i resolutions, and any other <br />funds legally available to BORROWER to reps T <br />a. Revenues for this loan are to a kept separate. The BORROWER hereby irrevocably <br />pledges such revenues to repay the STATE loan, agrees that these revenues shall be <br />set aside and kept in an account separate from other BORROWER revenues, and <br />warrants that these revenues shall not be used for any other purpose, except for <br />repayment of the BORROWER'S 1996 loan from the Southwestern Water Conservation <br />District. <br />b. Establish security interest in the revenues. The DISTRICT and the BORROWER agree <br />that, in order to provide a security interest to the STATE in the pledged revenues so <br />that the STATE shall have priority over all other competing claims for said revenues, <br />they shall provide a properly executed Security Agreement, which is attached as <br />APPENDIX B and incorporated herein. The DISTRICT and the BORROWER acknowledge <br />that the STATE shall file a UCC -1 Financing Statement with the Colorado Secretary of <br />State to perfect its security interest in the pledged revenues. <br />c. Levy charges and fees for repayment of the loan. The DISTRICT shall, pursuant to <br />its statutory authority and as authorized by its resolutions, take all necessary actions <br />consistent therewith to generate sufficient revenues to pay this contract loan in a <br />timely manner and as required by the terms and conditions of this contract. In <br />addition, in the event the fees charged by the DISTRICT become insufficient to assure <br />repayment to the STATE as required by this contract, then the DISTRICT shall <br />immediately take all necessary action consistent with its statutory authority and its <br />resolutions, including, but not limited to, charging additional fees to raise sufficient <br />revenue to assure repayment of the loan to the STATE. <br />d. Assessments for operations, maintenance and reserves. The DISTRICT shall, <br />pursuant to its statutory authority and its resolutions, levy charges from time to time <br />Page 5 of 12 <br />