PROJC01666

• Contract/PO #: C153738
• Contractor Name: Georgetown, Town of
• Contract Type: Loan
• Water District: 6
• County: Clear Creek
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Contract Documents

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a. Keep pledged revenues separate. The TOWN and the BORROWER shall set aside and keep
the pledged revenues in an account separate from other BORROWER revenues, and warrant
that these revenues will not be used for any other purpose.

b. Security interest in pledged revenUes. To provide a security interest to the STATE in the
pledged revenues so that the STATE shall have priority over all other competing claims for
said revenues, the BORROWER has dUly executed a Security Agreement, attached hereto as
Appendix 3 and incorporated herein.

c. Rate Covenant. Pursuant to their re~pective statutory authority, and as authorized by their
ordinances, the TOWN and/or the BORROWER shall take all necessary actions consistent
therewith during the temn of this contract to establish, levy and collect water rates, charges
and fees in amounts sufficient to pay this loan as required by this contract and the
promissory note, to cover all expenditures for operation and maintenance and emergency
repair services, and to maintain adequate debt service reserves.

d. Debt Service Reserve Account. BORROWER shall deposit an amount equal to one-tenth of
an annual payment into its debt service reserve account on an annual basis for the first ten
years of this loan.

e. Additional Debts or Bonds. The E)ORROWER shall not issue any indebtedness payable
from the pledged revenues and havinQ a lien thereon which is superior to the lien of this loan.
The BORROWER may issue parity debt only with the prior written approval of the STATE,
provided that:

i. The BORROWER is currently and at the time of the issuance of the parity debt in
substantial compliance with all of the obligations of this contract, including, but not limited
to, being current on the annual payments due under this contract and in the
accumulation of all amounts then required to be accumulated in the BORROWER'S debt
service reserve fund;

ii. The BORROWER provides to the STATE a Parity Certificate from an independent certified
pUblic accountant certifying that, based on an analysis of the BORROWER'S revenues,
excluding tap and connection feres, for 12 consecutive months out of the 18 months
immediately preceding the date of issuance of such parity debt" the BORROWER'S
revenues are sufficient to pay the annual operating and maintenance expenses, annual
debt service on all outstanding indebtedness having a lien on the pledged revenues,
including this loan, the annual debt service on the proposed indebtedness to be issued,
and all required deposits to any reserve funds required by this contract or by the
lender(s) of any indebtedness having a lien on the pledged revenues. The analysis of
revenues shall be based on the BORROWER'S current rate structure.

The BORROWER acknowledges and understands that any request for approval of the issuance of
parity debt must be reviewed and approved by the CWCB Executive Director prior to the
issuance of any parity debt.

9. Collateral. Part of the security provided for this loan, shall be an undivided one hundred percent
(100%) interest in the following, hereinafter referred to as COLLATERAL: One and one-half shares
of capital stock in the Farmers' High Line Canal and Reservoir Company. Contemporaneously
with closing on the purchase of said shares, the BORROWER shall execute a Deed of Trust,
Security Agreement and Stock Assignmrent, in the forms attached hereto as Appendix 4 and
incorporated herein, to convey a security interest in the shares to the STATE. To protect the
STATE'S, the TOWN'S and the BORROWER'S interests in the COLLATERAL, the BORROWER shall

Town of Georgetown & Town of Georgetown
Water and Sewer Activity Enterprise

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