PROJC01736 (3) - Laserfiche WebLink

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a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees that the pledged revenues shall be set aside and kept in an account separate from other BORROWER revenues, and warrants that these revenues shall not be used for any other purpose. b. Establish Security Interest. The BORROWER agrees that, in order to provide a security interest for the STATE in the pledged property so that the STATE shall have priority over all other competing claims for said property, it shall execute a Security Agreement, attached hereto as Appendix F incorporated herein, and an Assignment of Deposit Account as Security, attached as Appendix G and incorporated herein, prior to the disbursement of any loan funds. The BORROWER acknowledges that the STATE shall perfect its security interest in the BORROWER'S right to receive dues and assessment revenues by filing a UCC-1 Form with the Colorado Secretary of State. c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, articles of incorporation and by-laws, and as authorized by its resolution, the BORROWER shall take all necessary ~tions consistent therewith to levy assessments sufficient to pay this loa~~ed by the terms of this contract and the promissory note. In th~L~nl the J~nts levied by the BORROWER become insufficient to assure s~:tf>a~nt ~ STATE, the -SORROW"ER shall immediately tak~ all. necessary action~~t~~with its .statutory authority, its article's of incorporation, bylaws and resolutloliJ u' g, but not limited to, levying additional assessments to raise sufficient reven assure repayment of-the loan to the STATE. 11. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of any collateral for this loan, or any portion thereof or the revenues pledged to repay the loan herein, so long as any of the principal and any accrued interest required by the Promissory Note Provisions of the contract remain unpaid without the prior written concurrence of the STATE. 12. Remedies For Default. Upon default in the payments herein set forth to be made by the BORROWER, or default in the performance of any covenant or agreement contained herein, the STATE, at its option, may: a. declare the entire principal amount and accrued interest then outstanding immediately due and payable; b. act upon the Promissory Note, Security Agreement, and Assignment Of Deposit Account As Security; c. apply the funds contained in the CD ACCOUNT to the repayment of the loan; and/or d. take any other appropriate action. All remedies described herein may be simultaneously or selectively and successively enforced. The provisions of this contract may be enforced by the STATE at its option without regard to prior waivers of previous defaults by the BORROWER, through judicial Feasibility Report Loan Contract Page 5 of 11