PROJ01923 ‎(2)‎

• Contract/PO #: C150126
• Contractor Name: Kremmling, Town of
• Contract Type: Loan
• Water District: 50
• County: Grand
• Loan Projects - Doc Type: Contract Documents

this Ordinance. In the event that the System is disqualified as an enterprise and the
enforceability of the covenants made pursuant to this Ordin:ance are materially? adversely
affected? the Town covenants to immediately take all actions necessary to (i) qualify the
System as an enterprise within the meaning of Article X? 'Section 20 of the CCIlorado
ConstitUtion and (ii) 'permit the'enforcement of the covenants made herein.

(a) The Water Activity Enterprise has been duly established and is operating
during the current calendar ye~ as an "enterprise" within the meaning of Article X,
Section 20 of the Colorado Constitution; and .

(b) The execution of the Loan Contract and the issuance and delivery of the,
Promissory Note? and an procedures undertaken incident thereto, are in full compliance
and conformity with all applicable requirements, provisions and limitations ,prescrilbed by
the Constitution and laws of the State, including the Acts, and all conditions and
limitations of the Acts and other applicable law relating to the execution of the Loan
Contract and the issuance and delivery of the Promissory Note have been satisfied.

Section 12.' Additional Obligations . No bonds, notes, interim securities Dr other
obligations shall be issued payable from the Net Revenue and having a lien thereon which is
superior to the lien of the Promissory Note. The Town may issue Parity Lien Obligations only
upon compliance with the requirements of provision A(8)(e) of the Loan Contract. So,long as no
Event of Default shall have occurred and be continuing, nothing herein shall pr'event the Town
from issuing Subordinate Lien Obligations.

Section 13. Events of Default. The occurrence or existence of anyone or more of the
following events shall be an Event of Default hereunder:

(a) payment of the principal of or interest on the Promissory Note is not made
by the Town when due;

(b) the Town defaults in the performance of any other of its covenants in this
Ordinance, and such default continues for 30 days after written notice from CWCB
specifying such default. ,

Section 14. Remedies For Events of Default. Upon the occurrence and continuance
of an Event of Default, the CWCB may protect and enforce its rights by proper legal or equitable
remedy deemed most effectual including mandamus, specific performance of any covenants,

02-178969,2

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