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following occurs: <br /> i. The BORROWER is currently and at the time of the issuance of the Pa ity Bonds <br /> in substantial compliance with all of the obligations of this CONTRACT, including, but <br /> not limited to, being current on the annual payments due under this CONTRACT and <br /> in the accumulation of all amounts then required to be accumulated in the <br /> BORROWER'S debt service reserve fund; <br /> ii. The BORROWER provides to the CWCB a Parity Certificate from an in ependent <br /> certified public accountant certifying that, based on an analysis of the B RROWER'S <br /> revenues, for 12 consecutive months out of the 18 months immediately preceding <br /> the date of issuance of such Parity Bonds, the BORROWER'S revenues are sufficient <br /> to pay its annual operating and maintenance expenses, annual debt service on all <br /> outstanding indebtedness having a lien on the PLEDGED REVENUES (as defined in <br /> the LOAN RESOLUTION), including this loan, the annual debt service on the proposed <br /> indebtedness to be issued, and all required deposits to any reserve funds required <br /> by this CONTRACT or by the lender(s) of any indebtedness havinga lien on <br /> PLEDGED REVENUES. The analysis of revenues shall be based on the B RROWER'S <br /> current rate structure or the rate structure most recently adopted. No ore than <br /> 10% of total revenues may originate from tap and/or connection fees. <br /> iii. The BORROWER acknowledges and understands that any request for approval of <br /> the issuance of additional debt must be reviewed and approved by CWCB prior to <br /> the issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT, <br /> the BORROWER shall submit to the CWCB an annual audit report. <br /> 10. Pledged Revenues During Loan Repayment. The BORROWER shall not se I, <br /> convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwi a dispose <br /> of the PLEDGED REVENUES, so long as any of the principal, accrued intere , and late <br /> charges, if any, on this loan remain unpaid, without the prior written concurrence of <br /> the CWCB. The provisions of this Section 10 do not prohibit the Borr wer from <br /> applying any Pledged Revenues remaining in each year after the paymient of the <br /> annual amounts due on the loan to any other legally permissible purpose related to the <br /> System, including, without limitation, paying for additional capital improvements to, or <br /> repairs of, the System. <br /> 11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire <br /> principal, all accrued interest, and late charges, if any, as specified in the PROMISSORY <br /> NOTE, the CWCB agrees to release and terminate any and all of the CWCB's right, title, <br /> and interest in and to the PLEDGED REVENUES. <br /> 12. Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by <br /> its representations herein, the BORROWER shall be estopped from asserting for any <br /> reason that it is not authorized or obligated to repay the loan to the CWCB as required <br /> Page 5 of 13 <br />