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(c) Reserve Account. <br /> (i) Use of Moneys in the Reserve Account. Moneys in the Reserve <br /> Account shall be used, if necessary, only to prevent a default in the payment of <br /> 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) Rate Covenant. Until the principal of and interest on the Note have been <br /> fully paid, satisfied, and discharged, the District covenants to the CWCB to establish, <br /> levy, and Water Transmission Charge comprising the Pledged Revenues in amounts <br /> sufficient to pay the amount due under the Financing Documents. To the extent that the <br /> Pledged Revenues are not otherwise sufficient to pay the amount due under the Financing <br /> Documents, the Board shall increase the Water Transmission Charge imposed in the <br /> Ravenna Area so that the revenues from said charge are sufficient to timely pay the <br /> amounts due under the Financing Documents. <br /> (e) 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 /> 6 <br /> 4829-0441-5599.1 <br />