CT2015-152 Parity Certificate

• Contract/PO #: CT2015-152
• Contractor Name: Cortez, City of
• Contract Type: Loan
• County: Montezuma
• Loan Projects - Doc Type: Contract Documents

STATE OF COLORADO )
COUNTY OF MONTEZUMA ) ss. COVERAGE CERTIFICATE
CITY OF CORTEZ )
The undersigned, as the Finance Director for the City of Cortez, Montezuma County,
Colorado (the "City"), in connection with the execution and delivery by the City, acting by and
through its City of Cortez Water Enterprise (the "Enterprise") of that certain Loan Contract dated
as of April 14, 2015, with the Colorado Water Conservation Board (the "Loan Contract") and
Promissory Note representing the financial obligation of the City acting by and through the
Enterprise under the Loan Contract in the maximum principal amount of $858,500 (the "2015
Loan"), hereby certifies as follows:
1. Capitalized terms used herein and not defined shall have the meanings set forth in the
Loan Contract.
2. As of the date hereof, the City acting by and through the Enterprise has an outstanding
parity obligation described as that Governmental Agency Bond issued by the City acting by and
through the Enterprise, dated February 18, 2010, and pursuant to a Loan Agreement with the
Colorado Water Resources and Power Development Authority of said date (the "2010 Loan
Agreement" (the "Parity Lien Obligation"), and no others, which have irrevocable and first lien
(but not exclusive such liens) upon the Pledged Property (as defined in the Loan Agreement).
The terms Pledged Property and Net Revenues are used interchangeably in this Certificate.
3. As of the date hereof, there are no outstanding obligations which have either a
superior or a subordinate lien upon the Pledged Property.
4. The coverage requirements set forth in Exhibit F of the 2010 Loan Agreement, in
accordance with the waiver by the Executive Direction of the Colorado Water Resources and
Power Development Authority ("CWRPDA") pursuant to the policy change and authority
granted him by the Board of Directors of the CWRPDA at its March 6, 2015 meeting, have been
and are being met in that the revenues of the System after payment of operation and maintenance
expenses for the twelve (12) consecutive months out of eighteen (18) months preceding the
month in which such obligations are to be issued is at least equal to the sum of(a) one hundred
ten percent (110%) of the maximum annual debt service of(i) the Governmental Agency Bond
and all obligations of the Governmental Agency outstanding within such twelve (12) month
period payable on a parity with the Governmental Agency Bond from the Pledged Property, and
(ii) such proposed obligations to be issued, and (b) one hundred percent (100%) of all other
indebtedness payable from the Pledged Property.
1230490.1