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<br />, <br />.. <br /> <br />\; <br /> <br />substantially completed, or, at the STATE'S discretion, the amount shall be deducted <br />from the final disbursement of loan funds that the STATE makes to the BORROWER. <br /> <br />b, Final loan amount. In the event that the final loan amount is at least 90% of the <br />authorized loan amount, the STATE shall apply the remaining loan funds to prepayment <br />of the loan, If the remaining funds equal more than 10% of the authorized loan amount, <br />the STATE may apply those funds to prepayment of the loan with the BORROWER'S <br />consent, or the parties may execute a contract amendment to reflect the final loan <br />amount. When applying any remaining loan funds to prepayment of the loan, the <br />annual loan payment shall remain unchanged and the time of repayment shall be <br />decreased, <br /> <br />7, Warranties, The BORROWER warrants the following: <br /> <br />a. By acceptance of the loan money pursuant to the terms of this contract and by its <br />representations herein, the BORROWER shall be estopped from asserting for any reason <br />that the BORROWER is not authorized or obligated to repay the loan money to the STATE as <br />required by this contract. <br /> <br />b, The BORROWER has full power and authority to enter into this contract. The execution and <br />delivery of this contract and the performance and observation of its terms, conditions and <br />obligations have been duly authorized by all necessary actions of the BORROWER, <br /> <br />c, The BORROWER has not employed or retained any company or person, other than a bona <br />fide employee,working solidly for the BORROWER, to solicit or secure this contract. The <br />BORROWER has not paid or agreed to pay any person, company, corporation, individual, or <br />firm, other than a bona fide employee, any fee, commissiqn, percentage, gift, or other <br />consideration contingent upon or resulting from the award or the making of this contract. <br /> <br />d, The collateral identified in the Collateral Provision of this contract is not encumbered by <br />any other liens or in any other manner, except for any pledge to Denver Water <br />Department. <br /> <br />8, Pledge of revenues. For purposes of repayment of this loan, the BORROWER hereby <br />irrevocably pledges to the STATE from its general revenues received each year an amount <br />sufficient to pay the annual loan payment due under this contract and an additional sum <br />each year for the first 10 years, equal to one-tenth of the annual payment, for its reserve <br />debt service fund ("pledged revenues"), The BORROWER and the STATE hereby acknowledge <br />that the BORROWER also has pledged funds from its general revenues to repay a loan from the <br />Colorado Water Resources and Power Development Authority ("Authority") dated July 13, <br />1998 and that the Authority and the STATE hold parity liens on such revenues, Further, the <br />BORROWER agrees to: <br /> <br />a, Keep pledged revenues separate. The BORROWER shall set aside and keep the <br />pledged revenues in an account separate from other BORROWER revenues, and warrants <br />that these revenues will not be used for any other purpose, <br /> <br />b. Security interest in pledged revenues, The BORROWER hereby grants to the STATE a <br />security interest in the pledged revenuesto secure the prompt payment of all amounts <br />that may become due under this contract. <br /> <br />Chatfield South Water District <br /> <br />Page 4 of 11 <br />