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D. Debt Service Reserve Account or Fund. To establish and maintain the debt service reserve account or fund, the Borrower shall deposit an amount equal to one-tenth (0.1) of an annual payment into its debt service reserve account or 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. The debt service reserve account or fund requirement is in effect until the loan is paid in full. E. Additional Debts or Bonds. The Borrower shall not issue any indebtedness payable from the Pledged Revenues or have 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: i. The Borrower is currently and at the time of the issuance of the parity debt in substantial compliance with all of the obligations of this Contract, including, but not limited to, being current on the annual payments due under this Contract and in the accumulation of all amounts then required to be accumulated in the Borrower's debt service reserve fund; ii. The Borrower provides to the CWCB a Parity Certificate from an independent certified public accountant certifying that, based on an analysis of the Borrower's revenues, for twelve(12)consecutive months out of the eighteen(18)months immediately preceding the date of issuance of such parity debt, the Borrower's revenues are sufficient to pay its annual operating and maintenance expenses, annual debt service on all outstanding indebtedness having a lien on the pledged revenues,including this loan,the annual debt service on the proposed indebtedness to be issued, and all required deposits to any reserve funds required by this Contract or by the lender(s) of any indebtedness having a lien on the pledged revenues. The analysis of revenues shall be based on the Borrower's current rate structure or the rate structure most recently adopted. No more than ten percent(10%)of total revenues may originate from tap'and/or connection fees; iii. The Borrower acknowledges and understands that any request for approval of the issuance of additional debt must be reviewed and approved by the CWCB prior to the issuance of any additional debt. F. Pledged Revenues During Loan Repayment. The Borrower shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Revenues, so long as any of the principal, accrued interest, and late charges, if mny, on this loan remain unpaid, without the prior written concurrence of the CWCB. 12. PLEDGE OF PROPERTY The Borrower irrevocably pledges to the CWCB,for purposes of repayment of this loan,an interest in the Pledged Property. The Pledged Property as further described in Section 6(Loan Security)of Appendix 1 is authorized by the Borrower's Authorizing Resolution, and secured by the Deed of Trust(attached as Appendix 6). A. Pledged Property during Loan Repayment. The Borrower shall not sell, convey, assign, grant,transfer,mortgage,pledge,encumber, or otherwise dispose of the Pledged Property so long as any of the principal, accrued interest, and late charges, if any, on this loan remain unpaid, without the prior written concurrence of the CWCB. In the event of any such sale, transfer or encumbrance without the CWCB's written concurrence,the CWCB may at any Contract Number:CT2019-3706 Page 9 of 20 Version 0119