C150016 Contract

• Contract/PO #: C150016
• Contractor Name: Idaho Springs, City of
• Contract Type: Loan
• Water District: 7
• County: Clear Creek
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Contract Documents

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is less than 90% of the AUTHORIZED LOAN AMOUNT, the STATE may apply those funds to
prepayment of the loan with the BORROWER'S consent, or the State and the BORROWER
shall execute a contract amendment which will establish the final loan amount and
amend or replace the loan documents that reflect the final loan amount, including the
Promissory Note, Security Agreement, and Assignment of Certificate of Deposit.

10. Warranties. The BORROWER warrants the following:

a. By acceptance of the loan money pursuant to the terms of this contract and by their
representations herein, the BORROWER shall be estopped from asserting for any reason
that the BORROWER is not authorized or obligated to repay the loan money to the STATE
as required by this contract.

b. The BORROWER has full power and authority to enter into this contract. The execution
and delivery of this contract and the performance and observation of its terms,
conditions and obligations have been duly authorized by all necessary actions of the
BORROWER.

c. The BORROWER has not employed or retained any company or person, other than a
bona fide employee working solely for the BORROWER, to solicit or secure this contract.
The BORROWER has not paid or agreed to pay any person, company, corporation,
individual, or firm, other than a bona fide employee, any fee, commission, percentage,
gift, or other consideration contingent upon or resulting from the award or the making of
this contract.

d. The BORROWER is an enterprise legally created and maintained in compliance with S 37-
45.1-101, et seq., C.R.S., and Article X, Section 20 of the Colorado Constitution, and
has authority to enter into this contract with the STATE. The BORROWER shall
immediately notify the STATE in writing if the circumstances that comprise the basis of
this warranty change.

e. Except for the Prior Obligations described in Factual Recital 11, the collateral identified
in the Collateral Provisions of this contract is not encumbered by any other liens or in
any other manner.

f. The BORROWER agrees not to terminate or dissolve the BORROWER, nor adversely
withdraw or deplete its assets, nor otherwise adversely affect the BORROWER'S ability to
perform during the term of this contract.

g. The specific revenues to be pledged to repay the STATE under this contract shall be
water user rates, charges and fees ("system revenues"), the establishment of which
have been authorized by ordinance of the BORROWER. The BORROWER hereby pledges
sufficient annual system revenues to pay the annual installment amount pursuant to the
Promissory Note attached to this contract, and hereby agrees to establish a separate
account into which all such moneys shall be deposited.

11. Pledge of system revenues. The BORROWER hereby irrevocably pledges to the STATE for
purposes of repayment of this loan, system revenues levied for that purpose as authorized by
ordinances of the BORROWER (hereinafter referred to as the "pledged revenues").
Furthermore, the BORROWER agrees to:

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