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5. Return of Unused Loan Funds. Any loan funds disbursed but not expended for <br /> the PROJECT in accordance with the terms of this CONTRACT shall be remitted to <br /> the CWCB within 30 calendar days from notification from the CWCB of either (1) <br /> completion of the PROJECT or (2) determination by the CWCB that the PROJECT will <br /> not be completed. Any such loan funds so remitted to CWCB shall be applied to <br /> the principal payment of amounts due on the Loan. <br /> 6. Borrower's Authority to Contract. The BORROWER warrants that it has full power <br /> and authority to enter into this CONTRACT. The execution and delivery of this <br /> CONTRACT and the performance and observation of its terms, conditions and <br /> obligations have been duly authorized by all necessary actions of the BORROWER. <br /> The BORROWER'S AUTHORIZING RESOLUTION(S) (LOAN RESOLUTION) OR <br /> ORDINANCE(S) are attached as APPENDIX 3 and incorporated herein. <br /> 7. Bond Counsel's Opinion Letter. Prior to the execution of this CONTRACT by the <br /> CWCB, the BORROWER shall submit to the CWCB a letter from its bond counsel <br /> stating that it is the bond 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. 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 <br /> applicable and binding local law that prevent this CONTRACT from binding the <br /> BORROWER; and <br /> d. the CONTRACT will be valid and binding against the BORROWER if entered into by <br /> the CWCB subject to typical limitations related to bankruptcy, police power, and <br /> creditor's rights generally; and <br /> e. based upon the parity certificate, the net revenue of the Water Activity <br /> Enterprise as reflected in the Water Enterprise Fund (which funds accounts for <br /> the financial activities of the Water Activity Enterprise) are sufficient to enable <br /> the Town to execute the Promissory Note under the Loan Agreement; and <br /> f. the Enterprise is a government-owned business authorized to issue its own <br /> revenue bonds and receiving under 10% of annual revenue in grants from all <br /> Colorado state and local governments combined within the meaning of Article <br /> X, Section 20 of the Colorado Constitution. <br /> 8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for <br /> purposes of repayment of this loan, the PLEDGED REVENUES as defined in the Loan <br /> Resolution set forth in APPENDIX 3 and any other funds legally available to the <br /> BORROWER, in an amount sufficient to pay the annual payment due under this <br /> CONTRACT. <br /> Page 3 of 13 <br />