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<br />(.
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<br />on the annual payments due under this contract and in the accumulation of all amounts then
<br />required to be accumulated in the BORROWER'S reserve debt service fund;
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<br />Ii. The CITY and the BORROWER provide to the STATE a Parity Certificate from an independent
<br />certified public accountant certifying that, based on an analysis of the BORROWER'S
<br />revenues for 12 consecutive months out of the 18 months immediately preceding the date
<br />of issuance of such parity debt, the BORROWER'S revenues are sufficient to pay the annual
<br />debt service on all outstanding indebtedness, inclucing this loan, the annual debt service on
<br />the proposed indebtedness to be issued, and all deposits to any required reserve funds,
<br />including those required by this contract. If the BORROWER has adjusted its rates within said
<br />12 month period, the analysis shall be conducted based on the adjusted revenue rate,
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<br />The CITY and the BORROWER acknowledge and understand that any request for approval of the
<br />issuance of parity debt must be reviewed and approved by the CWCB at a regularly scheduled
<br />board meeting prior to the issuance of any parity debt,
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<br />14. Collateral. Part of the security provided for this loan, evidenced by the executed assignment of
<br />certificate of deposit attached hereto as Appendix 6 and incorporated herein. shall be an undivided
<br />one hundred percent (100%) interest in a certificate of deposit account in the amount of $8,200,00,
<br />hereinafter referred to as CD ACCOUNT, The STATE shall use.the funds contained in the CD ACCOUNT
<br />for the purpose of paying principal and interest due under this contract not otherwise paid by the
<br />BORROWER, Any amount withdrawn by the STATEjor this purpose shall be replenished by the
<br />BORROWER sixty (60) days after such withdrawal.,Ttle'STATE shall not disburse any loan funds under
<br />this contract until the BORROWER has established,the,CD ~CCOUNT,
<br />.....,'., '-.
<br />4 '" .:;~., .._~ '
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<br />15. Collateral during repayment. The CITY and the BORROWER shall not sell, convey, assign, grant,
<br />transfer, mortgage, pledge, encumber, or otherwise dispose of any collateral for this loan, including
<br />the water system revenues pledged to repay the loan herein, so long as any of the principal and any
<br />accrued interest required by the promissory note provisions of the contract remain unpaid, without the
<br />prior written concurrence of the STATE,
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<br />16. Remedies for default. Upon default in the payments herein set forth to be made by the BORROWER,
<br />or default in the performance by the CITY or the BORROWER of any covenant or agreement contained
<br />herein, the STATE, at its option, may:
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<br />a, declare the entire principal amount and accrued interest then outstanding immediately due and
<br />payable;
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<br />b, incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT
<br />facilities herein described and such expenses as may be necessary to cure the cause of default,
<br />and add the amount of such expenditures to the principal of the loan amount;
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<br />c, apply the funds contained in the CD ACCOUNT to repayment of the loan;
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<br />d, act upon its security interest and the promissory note;
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<br />e, take any other appropriate action,
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<br />All remedies described herein may be simultaneously or selectively and successively enforced, The
<br />provisions of this contract may be enforced by the STATE at its option without regard to prior waivers
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<br />City of Idaho Springs and
<br />City of Idaho Springs, Colorado, Water Enterprise
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