C150348 Contract

• Contract/PO #: CT2015-166
• Contract/PO #: C150348
• Contractor Name: San Luis Valley Water Conservation District
• Contract Type: Loan
• Water District: 20
• County: Rio Grande
• Loan Projects - Doc Type: Contract Documents

duly authorized by all necessary actions of the BORROWER. The BORROWER'S
AUTHORIZING RESOLUTION(S) OR ORDINANCE(S) are attached as APPENDIX 3 and
incorporated herein.
7. Bond Counsel's Opinion Letter. Prior to the execution of this CONTRACT by the
CWCB, the BORROWER shall submit to the CWCB a letter from its bond counsel stating
that it is the bond counsel's opinion that:
a. the CONTRACT has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the CONTRACT and to bind the
BORROWER; and
b. the resolutions or ordinances of the BORROWER authorizing the execution and
delivery of the CONTRACT were duly adopted by the governing bodies of the
BORROWER; and
c. there are no provisions in the Colorado Constitution or any other state or local law
that prevent this CONTRACT from binding the BORROWER; and
d. the CONTRACT will be valid and binding against the BORROWER if entered into by the
CWCB;
8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes
of repayment of this loan, revenues levied for that purpose as authorized in APPENDIX 3
and any other funds legally available to the BORROWER, in an amount sufficient to pay
the annual payment due under this CONTRACT ("PLEDGED REVENUES"). Further, the
BORROWER agrees to:
a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
PLEDGED REVENUES in an account separate from other BORROWER revenues and
warrants that these revenues will not be used for any other purpose.
b. Establish Security Interest. The BORROWER has duly executed a SECURITY
AGREEMENT, attached hereto as APPENDIX 4 and incorporated herein, to provide a
security interest to the CWCB in the PLEDGED REVENUES. The CWCB shall have
priority over all other competing claims for said revenues, except for the liens of
the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt), of
the PROJECT SUMMARY, which sets forth the position of the lien created by this
CONTRACT in relation to any existing lien(s).
c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the
BORROWER shall take all necessary actions consistent therewith during the term of
this CONTRACT to establish, levy and collect rates, charges and fees as described
in APPENDIX 3, in amounts sufficient to pay this loan as required by the terms of
this CONTRACT and the PROMISSORY NOTE, to cover all expenditures for operation
and maintenance and emergency repair services, and to maintain adequate debt
service reserves, including obtaining voter approval, if necessary, of increases in
the BORROWER'S rate schedule or taxes, if applicable.
d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROWER shall deposit an amount equal to one-tenth of an
Loan Contract C150348
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