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the provisions of C.R.S. 37-45.1-101 and is a government-owned business <br /> authorized to issue its own revenue bonds and receiving fewer than 10% of annual <br /> revenue in grants from all Colorado state and local governments combi ed within <br /> the meaning of Article X, Section 20 of the Colorado Constitution; and <br /> 9. Pledge of revenues. The Borrower irrevocably (but not exclusively) pled es to the <br /> CWCB, for the purpose of repaying the LOAN AMOUNT, the Pledged Re enues, in <br /> such amount as is necessary to make each annual payment due under his LOAN <br /> CONTRACT. Such pledge of the Pledged Revenues is on a parity with the oans from <br /> the Colorado Water Resources and Power Development Authority identified in Section <br /> 5 of Appendix 1 (the "Existing Parity Loans") and any additional indebtednes that may <br /> be secured by the Pledged Revenues in the future that is incurred in accor ance with <br /> Section A.9.e. hereof. (the "Additional Parity Indebtedness," and togethe with the <br /> Existing Parity Loans, the "Parity Indebtedness. <br /> a. Segregation of Pledged Revenues. The Pledged Revenues shall be accounted <br /> for and maintained in the City's Water Fund at all times. The Pledged Revenues <br /> shall be used first to pay debt service on the LOAN AMOUNT and all o-her Parity <br /> Indebtedness on a parity basis and thereafter may be used for any and all other <br /> expenses of the System. <br /> b. Establish Security Interest. The BORROWER has duly executed a SECURITY <br /> AGREEMENT, attached hereto as APPENDIX 5 and incorporated herein, to provide a <br /> security interest to the CWCB in the PLEDGED REVENUES. The lien of his LOAN <br /> CONTRACT on the Pledged Revenues shall have priority over all other ompeting <br /> claims with respect to the Pledged Revenues, except for the parity Ii n on the <br /> Pledged Revenues of any Parity Indebtedness. <br /> c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the <br /> BORROWER shall take all necessary actions consistent therewith during the term of <br /> this CONTRACT to establish, levy and collect rates, charges and fees as described in <br /> APPENDIX 4, in amounts sufficient to pay this loan as required by the terms of this <br /> CONTRACT and the PROMISSORY NOTE, to cover all expenditures for operation and <br /> maintenance and emergency repair services, and to maintain adecluate debt <br /> service reserves, including obtaining voter approval, if necessary, of in reases in <br /> the BORROWER'S rate schedule or taxes, if applicable. <br /> d. Debt Service Reserve Account or Fund. To establish and maintain the debt <br /> service reserve account or fund, the BORROWER shall deposit an amou t equal to <br /> one-tenth of an annual payment into its debt service reserve account or fond on the <br /> due date of its first annual loan payment and annually thereafter for the first ten years <br /> of repayment of this loan. In the event that the BORROWER applies funds from this <br /> account to repayment of the loan, the BORROWER shall replenish the account within <br /> ninety (90) days of withdrawal of the funds. The debt service reserve account or <br /> fund requirement will remain in effect until the loan is paid in full. <br /> e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness <br /> payable from the PLEDGED REVENUES and having a lien thereon which is superior to <br /> the lien of this loan. The BORROWER may issue Additional Parity Indebtedness only <br /> with the prior written approval of the CWCB and consent will be provided only if the <br /> Page 4 of 13 <br />