C150205 Feasibility Study

• Contract/PO #: C150205
• Contractor Name: Veits Pipeline Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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10. The Company shall pursue all available remedies to collect amounts due
from any Defaulting Member, which may include but is not limited to:
a. Repeated notices, verbal and written contacts, personal
persuasion, and
b. Extending a loan evidenced by a promissory note and secured by a
deed of trust, and
c. After 6 months from the due date of the unpaid assessment and
Defaulting Member is notified in writing that all costs associated
with the collection will be added to their default payment obligation,
pursue the matter in small claims court or county court.
d. Any other available legal remedy.
e. The Defaulting Member shall be responsible for all costs of
collection.

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11. In the event a Funding Member is in default, and with reference to
Section 2 above, the Company:
<a. Shall make the full annual Loan payment by drawing on the
Payment Reserve Account for any default amount, and
b. Shall continue to attempt collection of the default amount plus any
costs of collection, plus any applicable fines, fees and interest to
replenish the reserve fund, and,
If, after 10 months, the Company has failed to collect unpaid
amounts from the Defaulting Member, the Company shall send
notice of the additional amounts to be paid by the remaining
Funding Members, Such additional amounts shall be due ten
working days from the Funding Members' receipt of notice from the
Company of the additional amount due, and in time for the payment
reserve account to be replenished prior to the Company's next loan
payment becoming due. The Funding Members shall share the
additional amounts due in proportion to their respective obligations
for the Loan principal balance at the time (Section 4 above).
d. Shall continue to pursue collections as long as deemed practical by
the Company.

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12. Any amounts collected from a Defaulting Member by the Company shall
be applied first to pay the Company's costs of collections, including
attorney costs, and the remainder shall be used to replenish the reserve
account.

13. The Company shall make every effort to reduce the principal of the loan
at all times, for the benefit of all Members, which may include additional
principal payments to reduce the life of the Loan and re-amortizing the
loan if feasible.