C150160 PIF

• Contract/PO #: C150160
• Contractor Name: Ground Water Management Subdistrict of the Central Colorado Water Conservancy District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

b. the resolutions or ordinances of the BORROWER authorizing the execution and
delivery of the contract were duly adopted by the governing bodies of the
BORROWER;
c. there are no provisions in the Colorado Constitution or any other state or local law
that prevent this contract from binding the BORROWER;
d. the contract will be valid and binding against the BORROWER if entered into by the
CWCB; and
e. the election held by the BORROWER to obtain voter approval of this loan met all
requirements of the Colorado Constitution or any other state or local law.
8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes
of repayment of this loan, revenues levied for that purpose as authorized in Appendix 3
and any other funds legally available to the BORROWER, in an amount sufficient to pay
the annual payment due under this contract ("Pledged Revenues"). Further, the
BORROWER agrees to:
a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
Pledged Revenues in an account separate from other BORROWER revenues, and
warrants that these revenues will not be used for any other purpose.
b. Establish Security Interest. The BORROWER has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Revenues. The CWCB shall have
priority over all other competing claims for said revenues, except for the liens of
the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt), of
the Project Summary, which sets forth the position of the lien created by this
contract in relation to any existing lien(s).
c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the
BORROWER shall take all necessary actions consistent therewith during the term of
this contract to establish, levy and collect taxes as described in Appendix 3, in
amounts sufficient to pay this loan as required by the terms of this contract and
the Promissory Note, to cover all expenditures for operation and maintenance
and emergency repair services, and to maintain adequate debt service reserves,
including obtaining voter approval, if necessary, of increases in the BORROWER'S
rate schedule or taxes, if applicable.
d. Debt Service Reserve Account. To establish and maintai tie debt service
reserve account, the BORROWER shall deposit an amount equiton0-tenth of an
annual payment into its debt service reserve fund on the due date of its first annual
loan payment and annually thereafter for the first ten years of repayment of this
loan. In the event that the BORROWER applies funds from this account to
repayment of the loan, the BORROWER shall replenish the account within ninety
(90) days of withdrawal of the funds.
e. Additional Debts or Bonds. The BORROWER shall not issue any indebtedness
payable from the pledged revenues and having a lien thereon which is superior to
the lien of this loan. The BORROWER may issue parity debt only with the prior
written approval of the CWCB, provided that:
Page 3 of 10