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<br />, .
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<br />but not limited to, levying additional assessments to raise sufficient revenue to assure
<br />repayment of this loan.
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<br />d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory
<br />authority, articles of incorporation and bylaws, the BORROWER shall levy assessments in
<br />sufficient amounts to provide funds for adequate operation and maintenance, emergency
<br />repair services, and obsolescence and debt service reserves.
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<br />e. Debt Service Reserve Account. To establish and maintain the debt service reserve account,
<br />the BORROWER shall deposit an amount equal to one-tenth of an annual payment into its debt
<br />service reserve fund on the due date of its first annual loan payment and annually thereafter
<br />for the first ten years of this loan. In the event that the BORROWER applies funds from this
<br />account to repayment of the loan, the BORROWER shall replenish the account within ninety
<br />(90) days of withdrawal of the funds.
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<br />7. Collateral. The collateral for this loan is described in Section 3 (Collateral) of the Project
<br />Summary. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge,
<br />encumber, or otherwise dispose of the collateral for this loan, including the Pledged Property,
<br />so long as any of the principal, accrued interest, and late charges, if any, on this loan remain
<br />unpaid, without the prior written concurrence of the CWCB. In the event of any such sale,
<br />transfer or encumbrance without the CWCB's written concurrence, the CWCB may at any time
<br />thereafter declare all outstanding principal, interest, and late charges, if any, on this loan
<br />immediately due and payable.
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<br />8. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire principal,
<br />all accrued interest, and late charges, if any, as specified in the Promissory Note, the CWCB
<br />agrees to release and terminate any and all of the CWCB's right, title, and interest in and to the
<br />collateral and the property pledged to repay this loan.
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<br />9. Warranties.
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<br />a. The BORROWER warrants that, by accepting the loan money under this contract and by its
<br />representations herein, the BORROWER shall be estopped from asserting for any reason that
<br />it is not authorized or obligated to repay the loan to the CWCB as required by this contract.
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<br />b. The BORROWER warrants that it has not employed or retained any company or person, other
<br />than a bona fide employee working solely for the BORROWER, to solicit or secure this contract
<br />and has not paid or agreed to pay any person, company, corporation, individual, or firm, other
<br />than a bona fide employee, any fee, commission, percentage, gift, or other consideration
<br />contingent upon or resulting from the award or the making of this contract.
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<br />c. The BORROWER warrants that the collateral for this loan is not encumbered by any other
<br />deeds of trust or liens of any party other than the CWCB or in any other manner.
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<br />10. Change of Use of Water Shares During Term of Contract. If the interest rate for this loan is
<br />based on the CWCB's agricultural or blended agricultural and municipal rates, the BORROWER
<br />agrees to notify the STATE of any change of the use of the water rights represented by its
<br />shares from irrigation to municipal or commercial use. The interest rate shall be revised when
<br />the blend of the agricultural rate and the municipal/commercial rate increases the original
<br />interest rate by 0.5% or more. The parties shall amend this contract, including a revised
<br />promissory note, to effect said change in interest rate.
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<br />North Poudre Irrigation Company
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<br />Loan Contract
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