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Exhibit 4.35
 [EXECUTION COPY]
 
 CONNECTICUT DEVELOPMENT AUTHORITY
 to
 U.S. BANK NATIONAL ASSOCIATION,
as Trustee
 
 INDENTURE OF TRUST
 
 Dated as of December 1, 2007
 Connecticut Development Authority
$15,000,000 Water Facilities Revenue Bonds
(The Connecticut Water Company Project  2007A Series)




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TABLE OF CONTENTS
 PageParties and Preambles
    
    
    1Form of Bond
    
    
    4ARTICLE IDEFINITIONS AND INTERPRETATIONSection 1.1. Definitions
    
    
    15Section 1.2. Interpretation
    
    
    21ARTICLE IIAUTHORIZATION, TERMS AND ISSUANCE OF BONDSSection 2.1. Authorization for Indenture
    
    
    23Section 2.2. Authorization and Obligation of Bonds
    
    
    23Section 2.3. Issuance and Terms of the Bonds
    
    
    23Section 2.4. Redemption of Bonds
    
    
    26Section 2.5. Execution and Authentication of Bonds
    
    
    30Section 2.6. Delivery of Bonds
    
    
    30Section 2.7. No Additional Bonds
    
    
    31ARTICLE IIIGENERAL TERMS AND PROVISIONS OF BONDSSection 3.1. Date of Bonds
    
    
    32Section 3.2. Form and Denominations
    
    
    32Section 3.3. Legends
    
    
    32Section 3.4. Medium of Payment
    
    
    32Section 3.5. Bond Details
    
    
    32Section 3.6. Interchangeability, Transfer and Registry
    
    
    32Section 3.7. Bonds Mutilated, Destroyed, Stolen or Lost
    
    
    33Section 3.8. Cancellation and Destruction of Bonds
    
    
    33Section 3.9. Requirements With Respect To Transfers
    
    
    33Section 3.10. Registrar
    
    
    34ARTICLE IVAPPLICATION OF BOND PROCEEDS AND OTHER AMOUNTSSection 4.1. Accrued Interest
    
    
    35Section 4.2. Bond Proceeds
    
    
    35Section 4.3. Borrower Contribution
    
    
    35ARTICLE VCUSTODY AND INVESTMENT OF FUNDSSection 5.1. Creation of Funds
    
    
    36Section 5.2. Project Fund
    
    
    36Section 5.3. Debt Service Fund
    
    
    38Section 5.4. Rebate Fund
    
    
    40Section 5.5. Renewal Fund
    
    
    40Section 5.6. Investment of Funds and Accounts
    
    
    40Section 5.7. Non-presentment of Bonds
    
    
    41ARTICLE VIREDEMPTION OF BONDSSection 6.1. Privilege of Redemption and Redemption Price
    
    
    41
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PageSection 6.2. Selection of Bonds to be Redeemed
    
    
    41Section 6.3. Notice of Redemption
    
    
    41Section 6.4. Payment of Redeemed Bonds
    
    
    42Section 6.5. Notice to Authority and Borrower of Deceased Bondholder Redemption
    
    
    42Section 6.6. Cancellation of Redeemed Bonds
    
    
    42ARTICLE VIIPARTICULAR COVENANTSSection 7.1. No Pecuniary Liability on Authority or Officers
    
    
    44Section 7.2. Payment of Principal, Redemption Price, if any, and Interest
    
    
    44Section 7.3. Performance of Covenants
    
    
    44Section 7.4. Further Assurances
    
    
    44Section 7.5. Inspection of Project Books
    
    
    44Section 7.6. Rights under Financing Documents
    
    
    45Section 7.7. Creation of Liens, Indebtedness
    
    
    45Section 7.8. Recording and Filing
    
    
    45ARTICLE VIIIREMEDIES OF BONDHOLDERSSection 8.1. Events of Default; Acceleration of Due Dates
    
    
    46Section 8.2. Enforcement of Remedies
    
    
    46Section 8.3. Application of Revenue and Other Moneys After Default
    
    
    47Section 8.4. Actions by Trustee
    
    
    48Section 8.5. Majority Bondholders Control Proceedings
    
    
    48Section 8.6. Individual Bondholder Action Restricted
    
    
    48Section 8.7. Effect of Discontinuance of Proceedings
    
    
    49Section 8.8. Remedies Not Exclusive
    
    
    49Section 8.9. Delay or Omission Upon Default
    
    
    49Section 8.10. Notice of Default
    
    
    49Section 8.11. Waivers of Default
    
    
    49ARTICLE IXTRUSTEE AND PAYING AGENTSSection 9.1. Appointment and Acceptance of Duties
    
    
    51Section 9.2. Indemnity
    
    
    51Section 9.3. Responsibilities of Trustee
    
    
    51Section 9.4. Compensation
    
    
    52Section 9.5. Evidence on Which Trustee May Act
    
    
    52Section 9.6. Evidence of Signatures of Owners of the Bonds and Ownership of Bonds
    
    
    53Section 9.7. Trustee and any Paying Agent, May Deal in Bonds and With Borrower
    
    
    53Section 9.8. Resignation or Removal of Trustee
    
    
    53Section 9.9. Successor Trustee
    
    
    54Section 9.10. Appointment and Responsibilities of Paying Agent
    
    
    55Section 9.11. Resignation or Removal of Paying Agent; Successors
    
    
    55Section 9.12. Monies Held for Particular Bonds
    
    
    56Section 9.13. Continuation Statements
    
    
    56Section 9.14. Obligation to Report Defaults
    
    
    56Section 9.15. Payments Due on non-Business Day
    
    
    56Section 9.16. Appointment of Co-Trustee
    
    
    56Section 9.17. Project Description
    
    
    57ARTICLE XAMENDMENTS OF INDENTURESection 10.1. Limitation on Modifications
    
    
    58
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PageSection 10.2. Supplemental Indentures Without Consent of Owners of the Bonds
    
    
    58Section 10.3. Supplemental Indentures With Consent of Owners of the Bonds
    
    
    58Section 10.4. Supplemental Indenture Part of the Indenture
    
    
    59ARTICLE XIAMENDMENTS OF FINANCING DOCUMENTSSection 11.1. Rights of Borrower
    
    
    61Section 11.2. Amendments of Financing Documents Not Requiring Consent of Owners of the Bonds
    
    
    61Section 11.3. Amendments of Financing Documents Requiring Consent of Owners of the Bonds
    
    
    61ARTICLE XIIDISCHARGE OF INDENTURESection 12.1. Defeasance
    
    
    62ARTICLE XIIIGENERAL PROVISIONSSection 13.1. Notices
    
    
    63Section 13.2. Covenant Against Discrimination
    
    
    63Section 13.3. Parties Interested Herein
    
    
    63Section 13.4. Effective Date; Counterparts
    
    
    63Section 13.5. Date for Identification Purposes Only
    
    
    63Section 13.6. Separability of Invalid Provisions
    
    
    63APPENDICESAppendix A  Form of RequisitionAppendix B  Form of Redemption Request
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THIS INDENTURE OF TRUST CONNECTICUT
DEVELOPMENT AUTHORITY U.S. BANK NATIONAL ASSOCIATION
 WITNESSETH THAT:
 WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS




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WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS
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No. AR-
    
    $15,000,000
 NEITHER THE STATE OF CONNECTICUT NOR ANY MUNICIPALITY THEREOF IS OBLIGATED TO PAY, AND NEITHER
THE FAITH AND CREDIT NOR TAXING POWER OF THE STATE OF CONNECTICUT NOR ANY MUNICIPALITY THEREOF
IS PLEDGED TO THE PAYMENT OF, THE PRINCIPAL, PREMIUM, IF ANY, OF OR INTEREST ON THIS BOND.
 CONNECTICUT DEVELOPMENT AUTHORITY
WATER FACILITIES REVENUE BOND
(THE CONNECTICUT WATER COMPANY PROJECT  2007A SERIES)
         Payment of Principal and Interest
 -3-




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Authorization and Purpose
 Pledge and Security
 Event of Default
 General Optional Redemption
 -4-




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Extraordinary Optional Redemption
 Mandatory Taxability Redemption
 Redemption (or Purchase) by the Borrower in the Event of Death of a Beneficial Owner
  -5-




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-6-




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Optional Public Purpose Redemption
 -7-




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Extraordinary Optional Redemption Without Premium to Preserve Tax Exempt Status of the
Bonds
 Selection of Bonds to be Redeemed
 Notice of Redemption
   Transfer of Bonds
 Amendment of Indenture
 -8-




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Limitation on Bondholder Enforcement Rights
 Special Obligations of the Authority
 Estoppel Clause
  No Personal Liability
 Authentication
 -9-




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Authorized Denomination
 Persons Deemed Owners
 -10-




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CONNECTICUT DEVELOPMENT AUTHORITYBy
    
    Authorized
Representative
 -11-




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U.S. BANK NATIONAL ASSOCIATION, TrusteeBy
    
    Authorized Signature
    [,orU.S. BANK NATIONAL ASSOCIATION,
Paying AgentBy
    
    Authorized
Signature]
 -12-




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ASSIGNMENT
  
  
  
 
    Participant in a RecognizedSignature Guaranty Medallion Program
 By:Authorized Signature
  -13-




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WHEREAS
 NOW, THEREFORE, KNOW ALL PERSONS BY THESE PRESENTS:
 GRANTING CLAUSES
  I.
  II.
  III.
  -14-




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TO HAVE AND TO HOLD
 IN TRUST NEVERTHELESS
 PROVIDED, HOWEVER
 THIS INDENTURE OF TRUST FURTHER WITNESSETH
 ARTICLE I
DEFINITIONS AND INTERPRETATION
 Section 1.1. Definitions .
     -15-




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1)
    
    United States government obligations, United States agency obligations, United
States postal service obligations, repurchase agreements or certificates of deposit to
which specifically identified United States government, agency or postal service
obligations are pledged as collateral;2)
    
    certificates of deposit of any of the fifteen largest domestically chartered
banks or trust companies in the United States;3)
    
    commercial paper having the highest rating by a nationally recognized
securities rating service;4)
    
    tax-exempt securities not subject to the alternative minimum tax and which have
the highest rating by a nationally recognized securities rating service;5)
    
    savings accounts with banks or savings and loan associations the accounts of
which are federally insured;6)
    
    bank acceptances which are eligible collateral for borrowing from Federal
Reserve Banks;7)
    
    certificates of deposit of the Trustee (but only to the extent such
certificates of deposit do not exceed 10% of the amounts held in all Funds and Accounts
hereunder);8)
    
    guaranteed investment contracts and/or investment agreements, acceptable to the
Authority, authorized by applicable State law for the investment of proceeds of
obligations issued by the State and participation certificates in the short term
investment fund created and existing under Section 3-27a, Connecticut General Statutes,
as amended, and any State administered pool investment fund in which the Authority is
statutorily permitted or required to invest; and9)
    
    Mutual funds and money market funds of or available to the Trustee (including
any proprietary money market fund of the Trustee for which the Trustee or an affiliate
of the Trustee serves as investment advisor or provides other services and receives
reasonable compensation thereof) that are rated at least AAA or AAAm, as applicable, by
S&P or Aaa by Moodys and invest only in other Authorized Investments.
   -16-




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-17-




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-18-




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(1)
    
    Any Bonds cancelled by the Trustee because of payment or redemption prior to
maturity or surrendered to the Trustee for cancellation;(2)
    
    any Bond (or portion of a Bond) paid or redeemed or for the payment or
redemption of which there has been separately set aside and held in the Debt Service
Fund either:
 (a)
    
    moneys in an amount sufficient to effect payment of the
principal or applicable Redemption Price thereof, together with accrued
interest on such Bond to the payment or redemption date, which payment or
redemption date shall be, specified in irrevocable instructions given to the
Trustee to apply such moneys to such payment on the date so specified; or(b)
    
    obligations of the kind described in subsection 12.1(B) hereof
in such principal amounts, of such maturities, bearing such interest and
otherwise having such terms and qualifications as shall be necessary to provide
moneys in an amount sufficient to effect payment of the principal or applicable
Redemption Price of such Bond, together with accrued interest on such Bond to
the payment or redemption date, which payment or redemption date shall be
specified in irrevocable instructions given to the Trustee to apply such
obligations to such payment on the date so specified; or(c)
    
    any combination of (a) and (b) above;
 (3)
    
    Bonds in exchange for or in lieu of which other Bonds shall have been
authenticated and delivered under Article III hereof; and(4)
    
    any Bond deemed to have been paid as provided in Section 12.1 hereof.
    -19-




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-20-




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Section 1.2. Interpretation .
        -21-




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-22-




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ARTICLE II
AUTHORIZATION, TERMS AND ISSUANCE OF BONDS
 Section 2.1. Authorization for Indenture .
 Section 2.2. Authorization and Obligation of Bonds .
  Section 2.3. Issuance and Terms of the Bonds .
     -23-




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-24-




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-25-




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Section 2.4. Redemption of Bonds . General Optional Redemption
 Extraordinary Optional Redemption
 Mandatory Taxability Redemption
  Redemption (or Purchase) by the Borrower in the Event of Death of a Beneficial
Owner
 -26-




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-27-




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-28-




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Reserved
 Optional Public Purpose Redemption
 Extraordinary Optional Redemption Without Premium to Preserve Tax Exempt Status of the
Bonds
    -29-




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Section 2.5. Execution and Authentication of Bonds .
   Section 2.6. Delivery of Bonds .
 -30-




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Section 2.7. No Additional Bonds .
 -31-




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ARTICLE III
GENERAL TERMS AND PROVISIONS OF BONDS
 Section 3.1. Date of Bonds .
 Section 3.2. Form and Denominations .
 Section 3.3. Legends .
 Section 3.4. Medium of Payment .
 Section 3.5. Bond Details .
 Section 3.6. Interchangeability, Transfer and Registry .
   -32-




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Section 3.7. Bonds Mutilated, Destroyed, Stolen or Lost .
 Section 3.8. Cancellation and Destruction of Bonds .
 Section 3.9. Requirements With Respect To Transfers .
 -33-




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Section 3.10. Registrar .
 -34-




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ARTICLE IV
APPLICATION OF BOND PROCEEDS AND OTHER AMOUNTS
 Section 4.1. Accrued Interest .
 Section 4.2. Bond Proceeds .
 (A)
    
    $14,700,000.00 will be deposited in the Project Account of the
Project Fund; and(B)
    
    $300,000.00 will be deposited in the Costs of Issuance Account
of the Project Fund.
 Section 4.3. Borrower Contribution .
 -35-




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ARTICLE V
CUSTODY AND INVESTMENT OF FUNDS
 Section 5.1. Creation of Funds
           Section 5.2. Project Fund
      -36-




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-37-




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Section 5.3. Debt Service Fund
    -38-




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-39-




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Section 5.4. Rebate Fund
    Section 5.5. Renewal Fund
  Section 5.6. Investment of Funds and Accounts
 -40-




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Section 5.7. Non-presentment of Bonds
 ARTICLE VI
REDEMPTION OF BONDS
 Section 6.1. Privilege of Redemption and Redemption Price .
 Section 6.2. Selection of Bonds to be Redeemed .
 Section 6.3. Notice of Redemption .
 -41-




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Section 6.4. Payment of Redeemed Bonds .
  Section 6.5. Notice to Authority and Borrower of Deceased Bondholder Redemption .
 Section 6.6. Cancellation of Redeemed Bonds .
 -42-




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-43-




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ARTICLE VII
PARTICULAR COVENANTS
 Section 7.1. No Pecuniary Liability on Authority or Officers .
  Section 7.2. Payment of Principal, Redemption Price, if any, and Interest .
 Section 7.3. Performance of Covenants .
 Section 7.4. Further Assurances .
 Section 7.5. Inspection of Project Books .
 -44-




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Section 7.6. Rights under Financing Documents .
 Section 7.7. Creation of Liens, Indebtedness .
 Section 7.8. Recording and Filing .
 -45-




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ARTICLE VIII
REMEDIES OF BONDHOLDERS
 Section 8.1. Events of Default; Acceleration of Due Dates .
     may shall
 ipso facto
 Section 8.2. Enforcement of Remedies .
 -46-




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Section 8.3. Application of Revenue and Other Moneys After Default .
  FIRST
 SECOND
 -47-




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THIRD
    Section 8.4. Actions by Trustee .
 Section 8.5. Majority Bondholders Control Proceedings .
 Section 8.6. Individual Bondholder Action Restricted .
 -48-




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Section 8.7. Effect of Discontinuance of Proceedings .
 Section 8.8. Remedies Not Exclusive .
 Section 8.9. Delay or Omission Upon Default .
 Section 8.10. Notice of Default .
 Section 8.11. Waivers of Default .
 -49-




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-50-




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ARTICLE IX
TRUSTEE AND PAYING AGENTS
 Section 9.1. Appointment and Acceptance of Duties .
  Section 9.2. Indemnity .
  Section 9.3. Responsibilities of Trustee .
 - 51 -




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Section 9.4. Compensation .
 Section 9.5. Evidence on Which Trustee May Act .
  - 52 -




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Section 9.6. Evidence of Signatures of Owners of the Bonds and Ownership of Bonds .
    Section 9.7. Trustee and any Paying Agent, May Deal in Bonds and With Borrower .
 Section 9.8. Resignation or Removal of Trustee .
  - 53 -




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Section 9.9. Successor Trustee .
     - 54 -




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Section 9.10. Appointment and Responsibilities of Paying Agent .
 Section 9.11. Resignation or Removal of Paying Agent; Successors .
  - 55 -




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Section 9.12. Monies Held for Particular Bonds .
 Section 9.13. Continuation Statements .
 Section 9.14. Obligation to Report Defaults .
 Section 9.15. Payments Due on non-Business Day .
 Section 9.16. Appointment of Co-Trustee .
  - 56 -




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Section 9.17. Project Description .
 - 57 -




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ARTICLE X
AMENDMENTS OF INDENTURE
 Section 10.1. Limitation on Modifications .
 Section 10.2. Supplemental Indentures Without Consent of Owners of the Bonds .
         Section 10.3. Supplemental Indentures With Consent of Owners of the Bonds .
 - 58 -




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Section 10.4. Supplemental Indenture Part of the Indenture .
 - 59 -




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- 60 -




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ARTICLE XI
AMENDMENTS OF FINANCING DOCUMENTS
 Section 11.1. Rights of Borrower .
 Section 11.2. Amendments of Financing Documents Not Requiring Consent of Owners of the
Bonds .
 Section 11.3. Amendments of Financing Documents Requiring Consent of Owners of the
Bonds .
 - 61 -




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ARTICLE XII
DISCHARGE OF INDENTURE
 Section 12.1. Defeasance .
  - 62 -




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ARTICLE XIII
GENERAL PROVISIONS
 Section 13.1. Notices .
   Section 13.2. Covenant Against Discrimination .
 Section 13.3. Parties Interested Herein .
 Section 13.4. Effective Date; Counterparts .
 Section 13.5. Date for Identification Purposes Only .
 Section 13.6. Separability of Invalid Provisions .
 - 63 -




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IN WITNESS WHEREOF,
 CONNECTICUT DEVELOPMENT AUTHORITYBy
    
    /s/ Karin A. Lawrence     

Name: Karin A. LawrenceAuthorized RepresentativeU.S. BANK NATIONAL ASSOCIATIONBy
    
    /s/ Cauna M. Silva       

Name: Cauna M. SilvaTitle: Vice President
 - 64 -




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APPENDIX A TO INDENTURE
 REQUISITION
 
 
 
 Person
    
    Address
    
    Amount
    
    Item
  
 Amount
    
    Item
      A-1




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THE CONNECTICUT WATER COMPANYBy:Name:Title:
 A-2




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APPENDIX B TO INDENTURE
 FORM OF REDEMPTION REQUEST
$
CONNECTICUT DEVELOPMENT AUTHORITY
WATER FACILITIES REFUNDING REVENUE BONDS
(THE CONNECTICUT WATER COMPANY PROJECT  2007A SERIES)
 due December 1, 2037
(the Bonds)
 CUSIP NO.
 
  
 
   B-1




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IN WITNESS WHEREOF
 [PARTICIPANT NAME]By:Name:Title:
 B-2