PROJ01887 ‎(2)‎

• Contract/PO #: C150229
• Contractor Name: Logan Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

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BORROWER shall submit to the CWCB a letter from its attorney stating that it is the
attorney's opinion that

a. the contract has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;

b. the resolutions or ordinances of the BORROWER authorizing the execution and
delivery of the contract were duly adopted by the governing bodies of the
BORROWER;

C. there are no provisions in the Colorado Constitution or any other state or local law
that prevent this contract from binding the BORROWER;

d. the contract will be valid and binding against the BORROWER if entered into by the
CWCB; and

e. the election held by the Borrower to obtain voter approval of this loan met all
requirements of the Colorado Constitution or any other state or local law.

8. Pledge of revenues. The BORROWER irrevocably pledges to the CWCB, for purposes
of repayment of this loan, revenues levied for that purpose as authorized in Appendix 3
and any other funds legally available to the BORROWER, in an amount sufficient to pay
the annual payment due under this contract ("Pledged Revenues"). Further, the
BORROWER agrees to:

a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
Pledged Revenues in an account separate from other BORROWER revenues, and
warrants that these revenues will not be used for any other purpose.

b. Establish Security Interest. The BORROWER has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Revenues. The CWCB shall have
priority over all other competing claims for said revenues, except for the liens of
the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt), of
the Project Summary, which sets forth the position of the lien created by this
contract in relation to any existing lien(s).

c. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation
and bylaws, the BORROWER shall take all necessary actions consistent therewith
during the term of this contract to levy assessments sufficient to pay this loan as
required by the terms of this contract and the Promissory Note, to cover all
expenditures for operation and maintenance and emergency repair services, and to
maintain adequate debt service reserves. In the event the assessments levied by
the BORROWER become insufficient to assure such repayment to the CWCB, the
BORROWER shall immediately take all necessary action consistent with its statutory
authority, its articles of incorporation and bylaws including, but not limited to, levying
additional assessments to raise sufficient revenue to assure repayment of this loan.

d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROWER shall deposit an amount equal to one-tenth of an

Loan Contract C150229
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