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shall have priority over all other competing claims for said revenues, except <br /> for the liens of the BORROWER'S existing loans as listed in Section 5 (Schedule <br /> of Existing Debt), of the PROJECT SUMMARY, which sets forth the position of the <br /> lien created by this CONTRACT in relation to any existing lien(s). <br /> c. Debt Service Reserve Account or Fund. To establish and maintain the debt <br /> service reserve account or fund, the BORROWER shall deposit an amount equal <br /> to one-tenth of an annual payment into its debt service reserve account or fund <br /> on the due date of its first annual loan payment and annually thereafter for the <br /> first ten years of repayment of this loan. In the event that the BORROWER <br /> applies funds from this account to repayment of the loan, the BORROWER shall <br /> replenish the account within ninety (90) days of withdrawal of the funds. The <br /> debt service reserve account or fund requirement is in effect until the loan is <br /> paid in full. <br /> d. Additional Debts or Bonds. The BORROWER shall not issue any <br /> indebtedness payable from the PLEDGED REVENUES and having a lien thereon <br /> which is superior to the lien of this loan. The BORROWER may issue parity <br /> debt only with the prior written approval of the CWCB, provided that: <br /> i. The BORROWER is currently and at the time of the issuance of the parity debt <br /> in substantial compliance with all of the obligations of this CONTRACT, <br /> including, but not limited to, being current on the annual payments due under <br /> this CONTRACT and in the accumulation of all amounts then required to be <br /> accumulated in the BORROWER'S debt service reserve fund; <br /> ii. The BORROWER provides to the CWCB a Parity Certificate from an <br /> independent certified public accountant certifying that the debt service <br /> requirements on the Borrower's tax revenues, when combined with the <br /> repayment costs required under each Loan, does not exceed the maximum <br /> annual and total repayment cost parameters approved by the voters pursuant <br /> to the 2012 ballot question CCWCD Question 4A. Upon the proposed <br /> issuance of any additional obligations payable from a general ad valorem <br /> property tax which were authorized by the voters at the same election, the <br /> Borrower shall provide the CWCB with a certificate from an independent <br /> certified public accountant certifying that the combined debt service <br /> requirements of the Loans, and any proposed additional parity obligations do <br /> not exceed the maximum annual and total repayment cost parameters <br /> approved by the voters pursuant to the 2012 ballot question CCWCD <br /> Question 4A. <br /> The BORROWER acknowledges and understands that any request for approval <br /> of the issuance of additional debt must be reviewed and approved by the <br /> CWCB prior to the issuance of any additional debt. <br /> e. Annual Statement of Debt Coverage. Each year during the term of this <br /> CONTRACT, the BORROWER shall submit to the CWCB an annual financial <br /> statement. <br /> Page 4 of 12 <br />