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is in effect until the loan is paid in full. <br /> e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness <br /> payable from the PLEDGED REVENUES and having a lien thereon which is superior to <br /> the lien of this loan. The BORROWER may issue parity debt only with the prior written <br /> approval of the CWCB, provided that: <br /> i. The BORROWER is currently and at the time of the issuance of the parity debt in <br /> substantial compliance with all of the obligations of this CONTRACT, including, but not <br /> limited to, being current on the annual payments due under this CONTRACT and in the <br /> accumulation of all amounts then required to be accumulated in the BORROWER'S <br /> debt service reserve fund; <br /> ii. The BORROWER provides to the CWCB a Parity Certificate from an independent <br /> certified public accountant certifying that, based on an analysis of the BORROWER'S <br /> revenues, for 12 consecutive months out of the 18 months immediately preceding the <br /> date of issuance of such parity debt, the BORROWER'S revenues are sufficient to pay <br /> its annual operating and maintenance expenses, annual debt service on all <br /> outstanding indebtedness having a lien on the pledged revenues, including this loan, <br /> the annual debt service on the proposed indebtedness to be issued, and all required <br /> deposits to any reserve funds required by this CONTRACT or by the lender(s) of any <br /> indebtedness having a lien on the pledged revenues. The analysis of revenues shall <br /> be based on the BORROWER'S current rate structure or the rate structure most <br /> recently adopted. No more than 10% of total revenues may originate from tap and/or <br /> connection fees. <br /> The BORROWER acknowledges and understands that any request for approval of the <br /> issuance of additional debt must be reviewed and approved by the CWCB prior to the <br /> issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT, <br /> the BORROWER shall submit to the CWCB an annual financial statement. <br /> 9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey, assign, <br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED REVENUES, <br /> so long as any of the principal, accrued interest, and late charges, if any, on this loan remain <br /> unpaid, without the prior written concurrence of the CWCB. <br /> 10. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire principal, <br /> all accrued interest, and late charges, if any, as specified in the PROMISSORY NOTE, the CWCB <br /> agrees to release and terminate any and all of the CWCB's right, title, and interest in and to the <br /> PLEDGED REVENUES. <br /> 11. Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by <br /> its representations herein, the BORROWER shall be estopped from asserting for any <br /> reason that it is not authorized or obligated to repay the loan to the CWCB as required <br /> by this CONTRACT. <br /> b. The BORROWER warrants that it has not employed or retained any company or person, <br /> other than a bona fide employee working solely for the BORROWER, to solicit or secure <br /> this CONTRACT and has not paid or agreed to pay any person, company, corporation, <br /> Loan Contract C150410B <br /> Page 4 of 12 <br />