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debt service on the proposed indebtedness to be issued, and all required deposits to <br /> any reserve funds required by this CONTRACT or by the lender(s) of any indebtedness <br /> having a lien on the pledged revenues. The analysis of revenues shall be based on the <br /> BORROWER'S current rate structure or the rate structure most recently adopted. No <br /> more than io% 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 the 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, the <br /> BORROWER shall submit to the CWCB an annual audit report. <br /> to. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey, <br /> assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED <br /> REVENUES, as long as any of the principal, accrued interest, and late charges, if any, on this <br /> loan remain unpaid, without the prior written concurrence of the CWCB. The provisions of <br /> this Section io do not prohibit the Borrower from applying any PLEDGED REVENUES <br /> remaining in each year after the payment of the annual amounts due on the loan to any <br /> other legally permissible purpose, including, without limitation, paying for additional <br /> capital improvements or repairs. <br /> ii. 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 NOTE, <br /> the CWCB agrees to release and terminate any and all of the CWCB's right, title, and interest <br /> 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 its <br /> representations herein, the BORROWER shall be estopped from asserting for any reason <br /> that it is not authorized or obligated to repay the loan to the CWCB as required by this <br /> CONTRACT. <br /> b. The BORROWER warrants that it has not employed or retained any company or person, <br /> other than a bona fide employee working solely for the BORROWER, to solicit or secure this <br /> CONTRACT and has not paid or agreed to pay any person, company, corporation, <br /> individual, or firm, other than a bona fide employee, any fee, commission, percentage, <br /> gift, or other consideration contingent upon or resulting from the award or the making of <br /> this CONTRACT. <br /> c. The BORROWER warrants that the PLEDGED REVENUES and PLEDGED PROPERTY for this loan <br /> are not encumbered by any other deeds of trust or liens of any party other than the <br /> CWCB or in any other manner, except for the EXISTING PARITY LOANS which sets forth the <br /> position of the lien created by this CONTRACT in relation to any existing lien(s). <br /> Documentation establishing the relative priorities of said liens, if necessary, is attached to <br /> the PROJECT SUMMARY and incorporated herein. <br /> Page 6 of i4 <br />