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b;Repayment terms. TheaniOunt to be repaid shall be the entire principaJ'ambtmt actually borrowed under this contract, plus interest at two percent (2%), payable in ten (10) equal annual installments. Based on the amount borrowed of $7,500, then the said annual payments shall be Eight Hundred Thirty Four Dollars and Ninety-Five Cents ($834.95) each, which amount includes principal and interest. The first installment shall be due and payable one year after the completion and acceptance of the feasibility study by the STATE. Subsequent payments shall be due and payable on the same month and day of each year thereafter until all principal and accrued interest have been paid. c. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time; without penalty. These payments wil~ be applied first to any accrued interest and then to reduce the principal amount. d. 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 then outstanding immediately due and payable; (b) for the account of the BORROWER, incur and pay reasonable expenses as may be necessary to cure the cause of default; (c) act upon the security (described in APPENDIX D); and/or (d) take any other appropriate legal 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 by it of vious defaults by the BORROWER, through judicial proceedings to require specific performance of thiscontra, such other proceedings in law or equity as may be dee. med necessary by the STATE to ensure complianc i sions.thi~ contract and the laws and regulations under which this contract is entered into. "'" ~ ~ f. Additional assessments if needed to repay the S~E. ~~ warrants that in the event of a default by the BORROWER in the repayment to the STATE, and upo wn notice thereof from the STATE, the BORROWER shall take all necessary actions to levy an additional ass a to pledge additional revenues in a sufficient amount and in a timely manner to cure the default and t y he STATE as required by the contract. Such additional revenues shall be deemed covered by the existing s urity interest. g. The BORROWER agrees that the specific revenues to be pledged to repay the STATE under this contract shall be water user charges and fees, the establishment of which have been authorized by the BORROWER'S and TOWN'S joint resolution. The BORROWER hereby pledges sufficient annual revenues to pay the annual installment amount pursuant to paragraph 5.d of this contract, and hereby agrees to establish a separate account into which all such moneys shall be deposited. . 6. This contract controls if there is a conflict. In the event of conflict between the terms and conditions as set forth in this contract and any appendices, the provisions of this contract shall control. 7. Levy assessments for repayment of the loan. The BORROWER shall take all necessary actions consistent therewith to levy assessments to raise sufficient funds to pay this contract loan debt in a timely manner and as required by the terms and conditions herein to assure repayment of the project loan to the STATE. In the event that the assessment(s) levied by the BORROWER, or the revenues resulting therefrom, are or become insufficient to assure repayment to the STATE as required by the terms and conditions herein, then the BORROWER, upon written notice thereof from the STATE, shall immediately take all necessary action, including but not limited to levying additional assessments, to raise sufficient revenue to assure repayment of the feasibility study loan to the STATE. 8. Pledge of Revenues. a. Assessments to repay the loan. The BORROWER agrees that the specific revenues to be pledged to repay the STATE shall include, without being limited to, an assessment levied for that purpose as authorized by the TOWN'S and the BORROWER'S joint resolution. b.Revenues for this loan to be kept separate. The BORROWER hereby pledges such assessment revenues to repay the STATE loan, agrees that these revenues will be set aside and kept in an account separate from other BORROWER revenues, warrants that these revenues will not be used for any other purpose, and agrees to provide the STATE a perfected security interest such that the STATE has priority over all other competing claims for such secured revenues, TOWN OF NORWOOD & NORWOOD WATER COMMISSION Page 3 'of E. Pages FEASIBILITY REPORT CONTRACT