PROJ01902

• Contract/PO #: C153597
• Contractor Name: Windsor Reservoir and Canal Company
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Bill Number: HB 91-1006
• Loan Projects - Doc Type: Contract Documents

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satisfaction, or termination of any or all of the Contractor's
obligations ~nder this agreement, with or witho~t val~able
consideration, ~pon such terms and conditions as the state may
determine.to be: (a) advisable to f~rther the purposes of this
contract or to protect the state's financial interest therein,
and (b) consistent with both the stat~tory purposes of this
contract and the limitations of the statutory authority under
which it is made. '

J. Upon completion of repayment to the state in the amount of
One Million Three Hundred Forty-Nine Thousand Eight Hundred
Seventy Dollars and Fifty Cents ($1,349,870.50) as set forth in
paragraph B.13. above of this contract, the state agrees to
06R....7cyte the Geatraoter 0.11 ef t.he: Dtatc.' Bright, titla, lu.d
qqJlintcrc.atiR aRa to tae ~rejeot aHa &HY 6tRe~ preperty aecsrisQQ
~~ iR para~raph B.1i. ae07e ey aeea or ether ~re~eF eeRveyaRse.
execute and aeliver a release of the deed of trust and all other security
interests giyen herein. . ,
K. The co~oraQO Water Conservat~on Board, ~ts agents and
employees, is hereby designated as the agent of the state for
the purpose of this contract.

L. The Contractor agrees and understands that sections
37-60-119 through 37-60-122, CRS, as amended, require that the
loan of money by the State to the contracto~water
project be conditioned upon the repayment 0 to the
state. The Contractor hereby agrees t:ttake any 11. actions
necessary to guarantee such repayment -~~v~herein
including, without being limited to, t la~i s silCi~ed in
this contract. .4..J~

M. The Contractor 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
Resolution of the Contractor. The Contractor hereby pledges
such assessment revenues to repay the state loan, warrants that
these revenues will not be used for any other purpose, and
agrees to provide the State a perfected security interest in the
form provided by the State irrevocably pledging such revenues on
the date of execution of this contract.

N. The Contractor warrants that it has duly passed, or will
pass, a Resolution (Exhibit C) by its Board of Directors, as
provided in its By-Laws, authorizing: the Contractor to enter
into this contract with the state to borrow the principal sum
of Seven Hundred Sixty-One Thousand Dollars ($761,000); to make
and levy assessment(s) sufficient to payoff this contract loan
pursuant to its terms and to discharge this lawful indebtedness;
to set aside this assessment revenue in a special fund separate
and apart from other Contractor revenues to assure repayment of
this revenue to the State; and to sign a security interest in
such assessment revenues in favor of the state to secure the
repayment. Copies of such security interest (Uniform Commercial
Code--Security Agreement and Uniform Commercial COde--Financing
Statement) shall be attached hereto and incorporated herein as
Exhibits G and H, respectively. The Resolution of the
Contractor and the security interest of the Contractor are
conditions precedent to state performance.

O. The Contractor warrants that in the event of a default by
the Contractor in the repayment to the state, and upon written
l1oticethereof from the State, the Contractor shall, pursuant to
its By-Laws and Section 7-42-104, CRS (1986), immediately take
all necessary actions to levy an additional assessment and to
pledge additional revenues in a sufficient amount ana in a
timely manner to c~re the default and to repay the state as
required by the contract. Such additional revenues shall be
deemed covered by the existing security interest.

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