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the principal of or interest on the Note on any date in which such payments are <br /> due and the Reserve Account is hereby pledged to the payment of the Note. In <br /> the event the amounts credited to the Note Account are insufficient to pay the <br /> principal of or interest on the Note when due, the District shall transfer from the <br /> Reserve Account to the Note Account an amount which, when combined with <br /> moneys in the Note Account will be sufficient to make such payments when due. <br /> (ii) Funding and Maintenance of Required Reserve Amount. <br /> Commencing with the first Payment Date, the District shall annually credit an <br /> amount equal to one-tenth of the Required Reserve Amount on or before each <br /> Payment Date until such time as the amount credited thereto is equal to the <br /> Required Reserve Amount (i.e., the Reserve Account is to be fully funded within <br /> ten years from substantial completion of the Project). In the event that moneys <br /> from the Reserve Account are transferred to the Note Account as provided in <br /> paragraph (i) of this subsection (c), such amount shall be replenished within 90 <br /> days from the date of such transfer. Moneys credited to the Reserve Account may <br /> be invested or deposited in lawful securities or obligations and all interest income <br /> from the investment or reinvestment of moneys credited to the Reserve Account <br /> shall be credited to the Reserve Account until the amount therein is equal to the <br /> Required Reserve Amount, at which time as the balance of the Reserve Account <br /> shall be maintained in the Required Reserve Amount and such interest income <br /> shall be credited to the Note Account. <br /> (d) Enterprise Status. The Board hereby determines that the Enterprise is an <br /> "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution. <br /> The District has and will continue to maintain the System as part of its "enterprise" <br /> within the meaning Article X, Section 20 of the Colorado Constitution, and the meaning <br /> of Title 37, Article 45.1, C.R.S.; provided, however, after the current calendar year the <br /> District may disqualify the "enterprise" in any year in which said disqualification does <br /> not materially, adversely affect the enforceability of the covenants made in the Financing <br /> Documents. In the event that the "enterprise" is disqualified and the enforceability of the <br /> covenants made by the District in the Financing Documents are materially, adversely <br /> affected, the District covenants to (i) immediately take all actions necessary to qualify <br /> System as an enterprise within the meaning of Article X, Section 20 of the Colorado <br /> Constitution; and (ii) permit the enforcement of the covenants made in the Financing <br /> Documents. <br /> (e) Obligations Currently Secured by Net Revenues. Other than the Parity <br /> Lien Obligations, the District has no outstanding debt, bonds, loans or other multiple <br /> fiscal year obligations which are secured by Net Revenues. <br /> (f) Findings of the Board of Directors. The Board having been fully <br /> informed of and having considered all the pertinent facts and circumstances, hereby finds, <br /> determines,declares and covenants with the CWCB that: <br /> 7 <br /> 4828-5273-6853.1 <br />