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BORROWER shall repay that amount to the CWCB either within ten (10) days after the date the <br /> CWCB determines that the PROJECT has been substantially completed, or, at the CWCB's <br /> discretion, said interest shall be deducted from the final disbursement of loan funds that the <br /> CWCB makes to the BORROWER. <br /> 3. Return of Unused Loan Funds. Any CWCB funds not expended for the PROJECT in <br /> accordance with the terms of this Contract shall be remitted to the CWCB within 30 days of <br /> either (1) completion of the PROJECT or (2) upon the determination by the CWCB that the <br /> PROJECT will not be completed. <br /> 4. BORROWER'S Authority To Contract. The BORROWER warrants that it has full power and <br /> authority to enter into this contract. The execution and delivery of this contract and the <br /> performance and observation of its terms, conditions and obligations have been duly <br /> authorized by all necessary actions of the BORROWER. The Borrower's authorizing <br /> resolution(s) or ordinance(s) are attached as Appendix 3 and incorporated herein. <br /> 5. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB and the <br /> BORROWER shall submit to the CWCB an opinion from its red book bond counsel stating that it <br /> is the attorney's opinion that <br /> a. the contract will be duly executed by officers of the BORROWER who are duly elected or <br /> appointed and are authorized to execute the contract and to bind the BORROWER; <br /> b. the resolutions of the BORROWER authorizing the execution and delivery of the contract <br /> were duly adopted by the governing bodies of the BORROWER; <br /> C. there are no provisions in the Colorado Constitution or any other state or local law that <br /> prevent this contract from binding the BORROWER; and <br /> d. the contract will be valid and binding against the BORROWERff enteCed..intp by the CWCB. <br /> 6. Pledge of revenues. The BORROWER hereby irrevocably pledges to the CWCB„for purposes <br /> of repayment of this loan, revenues as described in Appendix 3,4eviei for-tt4a't purpose as <br /> authorized in Appendix 3, and any other funds legally.,avail.aple to the BORROWER, in an <br /> amount sufficient to pay the annual payment due under this ccntr ct rIe geld Revenues"). <br /> Further, the BORROWER agrees to: <br /> a. Keep pledged revenues separate. 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. Security interest in pledged revenues. To provide a security interest to the CWCB in <br /> the Pledged Revenues so that the CWCB shall have priority over all other competing <br /> claims for said revenues, except for the liens of the BORROWER'S existing loans as listed <br /> in Section 4 (Schedule of Existing Debt) of the Project Summary, the BORROWER has <br /> duly executed a Security Agreement, attached hereto as Appendix 4 and incorporated <br /> herein. <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 this <br /> contract to establish, levy and collect rates, charges and fees as described in Appendix <br /> 3, in amounts sufficient to pay this loan as required by this contract and the promissory <br /> note, to cover all expenditures for operation and maintenance and emergency repair <br /> services, and to maintain adequate debt service reserves, including obtaining voter <br /> approval, if necessary, of increases in the BORROWER'S rate schedule. <br /> Town of Monument Page 2 of 9 Loan Contract <br />