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<br />458 at Page 396, Reception #285771. The STATE and the BORROWER have agreed to apply a portion <br />of the loan funds to full repayment of the CoBank loan. The BORROWER shall provide the STATE with <br />a copy of the recorded Release of Mortgage from CoBank. <br />provide evidence <br /> <br />BORROWER shall record both deeds of trust in the appropriate county and provide the STATE with <br />evidence that the documents have been properly recorded prior to the STATE releasing any loan funds. <br />The BORROWER will provide the original recorded deeds of trust to the STATE within 60 days following <br />execution of this contract. <br /> <br />11. Collateral during repayment. The BORROWER shall not sell, convey, assign, grant, transfer, <br />mortgage, pledge, encumber, or otherwise dispose of any security for this loan, including the PROJECT <br />or any portion thereof or the assessment revenues pledged to repay the loan herein, so long as any <br />of the principal and any accrued interest required by the Promissory Note Provisions of the contract <br />remain unpaid without the prior writtenconcurrence of the STATE. <br /> <br />12. Payment of C08ank loan. Upon execution of this contract, the BORROWER shall request, in <br />writing-, that the eWCB pay the CoBank loan in full using the proceeds of this loan. The BORROWER <br />shall obtain and record a Release of Mortgage from CoBank and shall provide the STATE with a copy <br />of the recorded Release within six weeks of said payment to CoBank. <br /> <br />13. Warranties. <br /> <br />a. The BORROWER warrants thatbyacceptance of the loan money pursuant to the terms of <br />this contract and by the B()RROWER'S representation herein, the BORROWER shall be estopped <br />from asserting for any reason that it is not authorized or obligated to repay the loan money <br />to the STATE as required by this contract. <br /> <br />b. The BORROWER warrants th~t'. s ull ~e) and authority to enter into this contract. <br />The execution and delivery of t is aC~.dd~. . performance and observation of its terms, <br />conditions and obligations ~~. eel} ~~uthorized by all necessary actions of the <br />BORROWER. -~ ~~ <br /> <br />c. The BORROWER warrants~ tat ~not employed or retained any company or person, <br />other than a bona fide emplo e rking solely for the BORROWER, to solicit or secure this <br />contract and has not paid or a . a to pay any person, company, corporation, individual, or <br />firm, other than a bona fide employee, any fee, commission, percentage, gift, or other <br />consideration contingent upon or resulting from the award or the making of this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this <br />contract is encumbered only as follows: The property described in Appendix 81 is <br />encumbered by the CoBank Mortgage described above. The Norwest Bank of Grand Junction <br />("Bank") is a lienholder on the property described in Appendix 82. The Bank has subordinated <br />its lien to CWCB's security interest, as evidenced by the Subordination Agreement entered <br />into by the Bank and Remy Labrouche and Ruth A. Labrouche, which is incorporated herein <br />by reference. <br /> <br />14. Remedies for default. Upon default in the payments herein set forth to be made by the <br />BORROWER, or default in the performance of any covenant or agreement contained herein, the STATE, <br />at its option, may: <br />a. declare the entire principal amount and accrued interest then outstanding immediately due <br />and payable; <br /> <br />Vouga Reservoir Association <br /> <br />Page 6 of 1 2 <br /> <br />Loan Contract <br />