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WHEREAS, the District desires to endorse the CWCB loan and undertake those <br />commitments and actions necessary to effectuate and implement said loan. <br />NOW, THEREFORE, BE IT RESOLVED BY THE DISTRICT, AS FOLLOWS: <br />1. Loan Contract No. C-150135 ("Loan ContracY') between the CWCB, <br />District and the Enterprise, a copy of which is attached and incorporated herein as <br />Exhibit A, and which provides for a loan by the CW CB to the Enterprise in an amount <br />of $486,000.00 for the replacement of the ptunp plant transformer that powers the pump <br />delivexing water from the Colorado River to the Pump Canal, is hereby endorsed, <br />authorized and approved. <br />2. Consistent with the terms of the Loan Contract, the Enterprise shall <br />establish, levy and collect water user rates, charges and fees in amounts sufficient to <br />allow the Enterprise to repay the loan in a full and timely fashion. <br />3. Consistent with the Loan Contract, the Enterprise shall establish and <br />maintain a separate and distinct account into which revenues from water user rates, <br />fees and charges shall be deposited in sufficient amounts to pay the annual loan <br />installments as called for under the loan. <br />4. Consistent with the Loan Contract, the Enterprise shall establish and <br />maintain a separate and distinct account as a Debt Service Reserve Fund, into which <br />shall be deposited one-tenth of an annual loan payment, commencing on the due date <br />and annually thereafter for the first ten years ar repayment, and which funds will be <br />treated consistently with terms of the Loan Contract. <br />5. The District endorses the pledging of revenues by the Enterprise derived <br />fxom water user rates, charges and fees to xepay the CWCB loan, and to pledge said <br />water user rates, charges and fees as collateral for the loan and to execute documents <br />necessary to convey a security interest in said property to the CWCB. <br />6. Consistent with the Loan Contract, the Enterprise shall submit to the <br />CWCB an annual audit report and a certificate of debt service coverage from a Certified <br />Public Accountant. <br />Resolution <br />Silt Water Conseroancy District <br />Page 2 <br />