Laserfiche WebLink
<br />acknowledges that the STATE shall file a UCC-1 Financing Statement with the Colorado Secretary <br />of State to perfect its security interest in the pledged revenues. <br />c. Assessments for repayment of the loan. The BORROWER shall, pursuant to its statutory <br />authority, articles of incorporation and by-laws, and as authorized by its resolutions, annually seek <br />from its stockholders sufficient special assessments, and take all other necessary actions <br />consistent therewith to levy special assessments sufficient to repay this loan in a timely manner <br />and as required by the terms and conditions of this contract. Should the stockholders fail to set <br />any such special assessments, the BORROWER shall make adequate special assessments for the <br />purpose of repaying its obligations under this contract pursuant to 9 7-42-104(2), C.R.S. (1986). <br />In addition, in the event the special assessments levied by the BORROWER become insufficient to <br />assure repayment t()the STATE as required by the terms and conditions of this contract, then the <br />BORROWER shall irnmediately take all necessary action consistent with its statutory authority, its <br />articles of incorporation, by-laws and resolutions, including but not limited to, levying additional <br />assessments to raise sufficient revenue to assure repayment of the loan to the STATE. <br />d. Assessments for operations, maintenance and reserves. The BORROWER shall, pursuant to <br />its statutory authoritY; articles of incorporation, by-laws, and res . ,levy assessments from <br />time to time as necessary tmprovide sufficient funds for at tion and maintenance, <br />emergency repair services,;'Obsolescence reserves de erv The BORROWER shall <br />annually deposit an amount equal to one-tenth of an p t in s debt service reserve <br />fund for the first ten years of this,(t!:J~n. <br /> <br /> <br />12. Collateral. Part of the security provi y the executed Assignment of <br />Certificate of Deposit attached a . a herein, shall be an undivided one <br />hundred percent interest'in a cert It a nt established by the BORROWER in the <br />amount of one annual loan paymei1\ 26.29), einafter referred to as CD ACCOUNT. The STATE <br />shall use the funds contained in the~[! OUNT or the purpose of paying principal and interest due <br />under this contract not otherwise paid'l?" ORRowERAny amount withdrawn by the STATE for this <br />purpose shall be replenished by theB RROWI;~)Nithin sixty days after such withdrawal. The STATE <br />shall not disburse any loan funds under thisoontracHmtil the BORROWER has established the CD <br />ACCOUNT. " <br /> <br />13. Collateral during repayment. The BORROWER shall not sell, convey, assign, grant, transfer, <br />mortgage, pledge, encumber, or otherwise dispose of the CD ACCOUNT provided as security for the <br />loan or any of the special assessment revenues pledged herein, so long as any of the principal and <br />any accrued interest required by the Promissory Note Provisions of the contract remain unpaid, <br />without the prior written concurrence of the STATE. <br /> <br />14. Change of use of water shares during term of contract. The BORROWER agrees that, in the event <br />that any of the BORROWER'S stockholders uses the water rights represented by its shares for industrial <br />use and transports water under said rights through the siphon, the interest rate on that portion of the <br />outstanding loan amount corresponding to the percentage of shares for which the use has been <br />changed shall be adjusted to the commercial interest rate of 5.25% as set by the CWCB on November <br />25, 1996. The parties shall execute a contract amendment to effect the change in interest rate. The <br />BORROWER shall immediately notify the STATE of such a change in use of said water rights by any of its <br />stockholders. <br /> <br />15. Remedies for default. Upon default in the payments herein set forth to be made by the BORROWER, <br />or default in the performance of any covenant or agreement contained herein, the STATE, at its option, <br />may: <br />a. declare the entire principal amount and accrued interest then outstanding immediately due and <br />payable; <br />b. incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT <br />facilities herein described and such expenses as may be necessary to cure the cause of default, <br /> <br />The Consolidated Extension Canal Company <br /> <br />Page 6 of 11 <br /> <br />Loan Contract <br />