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from notification from the CWCB of either (1) completion of the PROJECT or (2) determination by the <br /> CWCB that the PROJECT will not be completed. Any such loan funds so remitted to CWCB shall be <br /> applied to the payment of amounts due on the Loan. <br /> 6. Borrower's Authority to Contract. The BORROWER warrants that it has full power and authority to <br /> enter into this CONTRACT. The execution and delivery of this CONTRACT and the performance and <br /> observation of its terms, conditions and obligations have been duly authorized by all necessary <br /> actions of the BORROWER. The BORROWER'S AUTHORIZING RESOLUTION (LOAN RESOLUTION) is <br /> attached as APPENDIX 3 and incorporated herein. <br /> 7. Attorneys' 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 /> bond counsel's opinion that: <br /> a. the resolution 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 /> b. the CONTRACT will be valid and binding against the BORROWER if entered into by <br /> the CWCB; and <br /> In addition to the foregoing opinion of bond counsel, prior to execution of this <br /> CONTRACT by the CWCB, the BORROWER shall submit to the CWCB a letter from its <br /> general counsel stating that it is the general counsel's opinion that: <br /> a. the CONTRACT has been duly executed by officers of the BORROWER who are <br /> duly elected or appointed and are authorized to execute the CONTRACT and to <br /> bind the BORROWER; and <br /> b. there are no provisions in the Colorado Constitution or any other state or local <br /> law that prevent this CONTRACT from binding the BORROWER. <br /> 8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes of <br /> repayment of this loan, the PLEDGED REVENUES as defined in the Loan Resolution set forth <br /> in APPENDIX 3 and any other funds legally available to the BORROWER, in an amount <br /> sufficient to pay the annual payment due under this'CONTRACT. <br /> a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep <br /> the pledged revenues in an account separate from other BORROWER revenues <br /> and 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 <br /> a 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), <br /> of 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 <br /> Loan Contract C15041OD <br /> Page 3 of 13 <br />