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<br />( <br /> <br />.-... <br />{ , <br /> <br />levying and collection of taxes; and the Board shall levy, certifY, and collect said taxes in the <br />manner provided by law for the purpose offuncling the Note Fund for the payment of the <br />principal of and interest on the Note, and said t(!Xes, when collected, shall be kept for and applied <br />only to the payment of the principal of, interest on and any late charges on the Note as herein <br />specified. <br /> <br />Pursuant to Section A(4)(e) of the Loan Contract the District shall execute the <br />Security Agreement to convey to the CWCB a security interest in the Note Fund, also described <br />as "pledged revenues," <br /> <br />Moneys credited to the Note Fund may be invested or deposited in accordance <br />with the laws of the State of Colorado, <br /> <br />Section 5, Reserve Account. There is hereby created and established the <br />Reserve Account which will be maintained sep!lfately as a line item within the Note Fund, <br />Moneys in the Reserve Account shall be used, if necessary, only to prevent a default in the <br />payment of the principal of or interest on the Note, The Reserve Account shall not be used to <br />payor secure any other bonds or obligations, and the Reserve Account is hereby pledged to the <br />payment of the Note, In the event the amounts credited to the Note Fund are insufficient to pay <br />the principal of or interest on the Note when due, the District shall transfer from the Reserve <br />Account an amount which, when combined with moneys in the Note Fund, will be sufficient to <br />make such payments when due" <br /> <br />In the event the District applies funds from the Reserve Account toward <br />repayment of the Note, the District shall replenish the amount of withdrawal and replenish the <br />Reserve Account as soon as practicable by law, <br /> <br />The Reserve Account shall be funded as set forth in Section A(4)(c) of the Loan <br />Contract. The Reserve Account shall be funded and maintained as aforesaid for so long as the <br />Note is outstanding, <br /> <br />Moneys credited to the Reserve Account may be invested in accordance with the <br />laws of the State of Colorado. Except to the extent otherwise required by such Secti!Jn, so long <br />as the District is in compliance with the requirements of this Section concerning credits to the <br />Reserve Account, all interest income from the investment or reinvestment of moneys credited to <br />the Reserve Account shall be credited to the Note Fund, <br /> <br />Section 6. Direction to Take Other Action, The appropriate officers and <br />employees of the District are hereby authorized and directed to take all other actions necessary or <br />appropriate to effectuate the provisions of this Resolution, including but not limited to the <br />execution of such certificates and affidavits as may be reasonably required by CWCB or bond <br />counsel. <br /> <br />" <br /> <br />-7- <br />