C150150 Contract

• Contract/PO #: C150150
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Contract Documents

BORROWER shall submit to the eWCB a letter from its attorney stating that it is the
attorney's opinion that

a. the contract has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;

b. the resolutions of the BORROWER authorizing the execution and delivery of the
contract were duly adopted by the BORROWER'S board of directors.

c. there are no provisions in the BORROWER'S articles of incorporation or bylaws or any
state or local law that prevent this contract from binding the BORROWER; and

d. the contract will be valid and binding against the BORROWER if entered into by the
eWeB.

8. Pledge Of Property. The BORROWER irrevocably pledges to the eWCB for purposes of
repayment of this loan: (1) revenues from membership dues and assessments levied
for that purpose as authorized by the BORROWER'S resolution(s) and (2) all of the
BORROWER'S rights to receive said membership dues and assessment revenues,
hereinafter collectively referred to as the "Pledged Property."

a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
pledged revenues in an account separate from other BORROWER revenues, and
warrants that these revenues will not be used for any other purpose.

b. Establish Security Interest. The BORROWER has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the eWCB in the Pledged Property. The eWCB shall have.
priority over all other competing claims for said Pledged Property, except for the
liens of the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing
Debt) of the Project Summary, which sets forth the position of the lien created by
this contract in relation to any existing Iien(s).

c. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation
and bylaws, the BORROWER shall take all necessary actions consistent therewith
during the term of this contract to levy membership dues and assessments sufficient.
to pay this loan as required by the terms of 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. In the event the
membership dues and assessments levied by the BORROWER become insufficient to
assure such repayment to the eWCB, the BORROWER shall immediately take all
necessary action consistent with its statutory authority, its articles of incorporation
and bylaws including, but not limited to, levying additional membership dues and
assessments to raise sufficient revenue to assure repayment of this loan.

d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROWER shall deposit an amount equal to one-tenth of an
annual payment into its debt service reserve fund on the due date of its first annual

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