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duly authorized by all necessary actions of the BORROWER. The BORROWER's <br />AUTHORIZING RESOLUTION(S) OR ORDINANCE(s) are attached as APPENDIX 3 and <br />incorporated herein. <br />7. Attorney's Opinion Letter. Prior to the execution of this CONTRACT by the CWCB, the <br />BORROWER shall submit to the CWCB a letter from its bond counsel stating that it is the <br />attorney's opinion that <br />a. the CONTRACT has been duly executed by officers of the BORROWER who are duly <br />elected or appointed and are authorized to execute the CONTRACT and to bind the <br />BORROWER; and <br />b. the resolutions or ordinances of the BORROWER authorizing the execution and <br />delivery of the CONTRACT were duly adopted by the governing bodies of the <br />BORROWER; and <br />c. there are no provisions in the Colorado Constitution or any other state or local law <br />that prevent this CONTRACT from binding the BORROWER; and <br />d. the CONTRACT will be valid and binding against the BORROWER if entered into by the <br />CWCB. <br />8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes <br />of repayment of this loan, revenues levied for that purpose as authorized in APPENDIX 3 <br />and any other funds legally available to the BORROWER, in an amount sufficient to pay <br />the annual payment due under this CONTRACT ( "PLEDGED REVENUES "). Further, the <br />BORROWER agrees to: <br />a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the <br />PLEDGED REVENUES in an account separate from other BORROWER revenues and <br />warrants that these revenues will not be used for any other purpose. <br />b. Establish Security Interest. The BORROWER has duly executed a SECURITY <br />AGREEMENT, attached hereto as APPENDIX 4 and incorporated herein, to provide a <br />security interest to the CWCB in the PLEDGED REVENUES. The CWCB shall have <br />priority over all other competing claims for said revenues, except for the liens of <br />the BORROWER's existing loans as listed in Section 5 (Schedule of Existing Debt), of <br />the PROJECT SUMMARY, which sets forth the position of the lien created by this <br />CONTRACT in relation to any existing lien(s). <br />c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the <br />BORROWER shall take all necessary actions consistent therewith during the term of <br />this CONTRACT to establish, levy and collect rates, charges and fees as described <br />in APPENDIX 3, in amounts sufficient to pay this loan as required by the terms of <br />this CONTRACT and the PROMISSORY NOTE, to cover all expenditures for operation <br />and maintenance and emergency repair services, and to maintain adequate debt <br />service reserves, including obtaining voter approval, if necessary, of increases in <br />the BORROWER's rate schedule or taxes, if applicable. <br />d. Debt Service Reserve Account. To establish and maintain the debt service <br />reserve account, the BORROWER shall deposit an amount equal to one -tenth of an <br />Loan Contract C150346 <br />Page 3 of 12 <br />