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months immediately preceding the date of issuance of such Parity Bonds, the <br /> BORROWER'S revenues are sufficient to pay its annual operating and <br /> maintenance expenses, annual debt service on all outstanding indebtedness <br /> having a lien on the PLEDGED REVENUE (as defined in the LOAN RESOLUTION), <br /> including this loan, the annual debt service on the proposed indebtedness to <br /> be issued, and all required deposits to any reserve funds required by this <br /> CONTRACT or by the lender(s) of any indebtedness having a lien on PLEDGED <br /> REVENUE. The analysis of revenues shall be based on the BORROWER'S <br /> current rate structure or the rate structure most recently adopted. No more <br /> than 10% of total revenues may originate from tap and/or connection fees. <br /> The BORROWER acknowledges and understands that any request for approval of <br /> the issuance of additional debt must be reviewed and approved by the CWCB <br /> Director prior to the issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this <br /> CONTRACT, the BORROWER shall submit to the CWCB an annual audit report <br /> and a certificate of debt service coverage from a Certified Public Accountant. <br /> 9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, <br /> convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise <br /> dispose of the PLEDGED REVENUES, so long as any of the principal, accrued <br /> interest, and late charges, if any, on this loan remain unpaid, without the prior <br /> written concurrence of the CWCB. <br /> 10.Release After Loan Is Repaid. Upon complete repayment to the CWCB of the <br /> entire principal, all accrued interest, and late charges, if any, as specified in the <br /> PROMISSORY NOTE, the CWCB agrees to release and terminate any and all of the <br /> CWCB's right, title, and interest in and to the PLEDGED REVENUES. <br /> 11.Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT <br /> and by its representations herein, the BORROWER shall be estopped from <br /> asserting for any reason that it is not authorized or obligated to repay the loan to <br /> the CWCB as required by this CONTRACT. <br /> b. The BORROWER warrants that it has not employed or retained any company or <br /> person, other than a bona fide employee working solely for the BORROWER, to <br /> solicit or secure this CONTRACT and has not paid or agreed to pay any person, <br /> company, corporation, individual, or firm, other than a bona fide employee, any <br /> fee, commission, percentage, gift, or other consideration contingent upon or <br /> resulting from the award or the making of this CONTRACT. <br /> c. The BORROWER warrants that the NET REVENUE is not encumbered by any other <br /> deeds of trust or liens of any party other than the CWCB or in any other manner, <br /> except for any existing lien(s) identified 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 /> Page 5 of 13 <br />