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9. Pledge of Revenues. The BORROWER irrevocably pledges, to the CWCB, for purposes of <br /> repayment of this loan the PLEDGED REVENUES as defined in the LOAN RESOLUTION set forth <br /> in APPENDIX 4a and 4b and any other funds legally available to the BORROWER in an <br /> amount sufficient to pay the annual payment due under this CONTRACT (collectively <br /> PLEDGED REVENUES). <br /> a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the <br /> PLEDGED REVENUES in an account separate from other BORROWER revenues and warrants <br /> that these revenues will not be used for any other purpose. <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 security <br /> interest to the CWCB in the PLEDGED REVENUES. The CWCB shall have priority over all <br /> other competing claims for said revenues, except for the liens of the BORROWER'S existing <br /> loans as listed in Section 5 (Schedule of Existing Debt), of the PROJECT SUMMARY (APPENDIX <br /> 1), which sets forth the position of the lien created by this CONTRACT in relation to any <br /> existing lien(s). <br /> c. Assessment Covenant. Pursuant to its statutory authority and as permitted by law, <br /> the BORROWER shall take all necessary actions consistent therewith during the term of this <br /> CONTRACT to establish, levy and collect rates, charges and fees as described in APPENDIX <br /> 4a and 4b, 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 adequate debt service <br /> reserves, including obtaining voter approval, if necessary, of increases in the BORROWER'S <br /> rate schedule or taxes, if applicable. <br /> d. Debt Service Reserve Account or Fund. To establish and maintain the debt service <br /> reserve account or fund, the BORROWER shall deposit an amount equal to one-tenth of an <br /> annual payment into its debt service reserve account or fund on the due date of its first <br /> annual loan payment and annually thereafter for the first ten years of repayment of this loan. <br /> In the event that the BORROWER applies funds from this account to repayment of the loan, <br /> the BORROWER shall replenish the account within ninety (90) days of withdrawal of the <br /> funds. The debt service reserve account or fund requirement is in effect until the loan is <br /> 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 the <br /> lien of this loan. The BORROWER may issue parity debt only with the prior written approval <br /> of the CWCB, provided that: <br /> i. The BORROWER is currently and at the time of the issuance of the parity debt in <br /> 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 independent <br /> certified public accountant certifying that, based on an analysis of the BORROWER'S <br /> Page 4 of 13 <br />