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<br />c. The BORROWER and the Crr, have not employed or retained any company or person,
<br />other than a bona fide employee working solidly for the BORROWER and/or the CITY, to
<br />solicit or secure this contract. The BORROWER and the CITY have not paid or agreed to
<br />pay any person, company, corporation, individual, or firm, other than a bona fide
<br />employee, any fee, commission, percentage, gift, or other consideration contingent
<br />upon or resulting from the award or the making of this contract.
<br />
<br />d. The BoRROWER is an enterprise legally created and maintained in compliance with S 37-
<br />45.1-101, et sea., C.R.S., and Article X, Section 20 of the Colorado Constitution, and
<br />has authority to enter into this contract with the STATE. The BORROWER and/or the CITY
<br />shall immediately notify the STATE in writing it the circumstances which formulate the
<br />basis of this warranty change.
<br />
<br />e. The collateral identified in the Collateral Provisions of this contract is not encumbered
<br />by any other liens or in any other manner, except for the STATE'S lien created by the
<br />August 7,1995 Loan Contract and Promissory Note entered into by the STATE, the CITY
<br />and the BORROWER.
<br />
<br />f. The BORROWER and the CITY agree not to terminate or dissolve the BORROWER, nor
<br />adversely withdraw or deplete its assets, nor otherwise adversely affect the
<br />BORROWER'S ability to perform during the term of this contract.
<br />
<br />g. The specific revenues to be pledged to repay the STATE under this contract shall be
<br />water user rates, charges and tees ("water system revenues"), the establishment of
<br />which have been authorized by ordinance of the CITY. The BoRROWER hereby pledges
<br />sufficient annual water system revenues to pay the annual installment amount pursuant
<br />to the Promissory Note attached to this contract, and hereby agrees to establish a
<br />separate account into which all such moneys shall be deposited.
<br />
<br />11. Pledge of water system revenues. The BORROWER hereby irrevocably pledges to the
<br />STATE, for purposes 01 repayment of this loan, water system revenues levied for that
<br />purpose as authorized by ordinances of the CITY ("pledged revenues"). Further, the CITY
<br />and the BORROWER agree to:
<br />
<br />a. Keep pledged revenues separate. The CITY and the BORROWER shall set aside and
<br />keep the pledged revenues in an account separate from other BORROWER revenues,
<br />and warrant that these revenues will not be used for any other purpose.
<br />
<br />b. Security interest in pledged revenues. To provide a security interest to the STATE
<br />in the pledged revenues so that the STATE shall have priority over all other competing
<br />claims lor said revenues, except lor the BORROWER'S 1995 loan from the STATE, the
<br />BORROWER'S Water Revenue Refunding and Improvement Bond, Series 1994, the
<br />1997 Bonds, the BoRROWER'S obligations under a Reimbursement Agreement with
<br />State Street Bank dated December 16, 1997 entered into in connection with the
<br />issuance of the 1997 Bonds, and the BORROWER'S loans from the CWRPDA and RD to
<br />finance the PROJECT, all of with which this loan shall have parity status, the BORROWER
<br />has duly executed a Security Agreement, attached hereto as Appendix C and
<br />incorporated herein.
<br />
<br />c. Rate Covenant. Pursuant to its authority, and as authorized by its ordinances, the
<br />CITY shall take all necessary actions consistent therewith during the term of this
<br />contract to establish, levy and collect water rates, charges and fees in amounts
<br />sufficient to pay this loan as required by this contract and the promissory note, to
<br />
<br />
<br />City of Fort Morgan, Colorado &
<br />City of Fort Morgan, Colorado, Water Works and Distribution Enterprise
<br />
<br />Page 6 of 13
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