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. I oth~r BORROWER revenues, and warrants that these revenues shall no,t be used for any ~ther purpose. I , , a. I;stablish Security Interest. The BORROWER agrees that, in orde~ to provide a security interest for the STATE in the pledged property so that the STATE shall have priority over all other competing claims for said property, it shall execLte a Security ~greement, "attached hereto as Appendix F incorporated he~ein, and an ~ssignment of Deposit Account as Security, attached as Appendix G and incorporated herein, prior to the disbursement of any loan funds. The BORROWER ~cknowledges that the STATE shall perfect its security interest in thel BORROWER'S right to receive .membership dues and assessment revenues by filing aUCC-1 _ _ _ Ftorm with the Colorado Secretary of State.. 1 b. Assessments For Repayment Of The Loan. Pursuant to its statu ory authority, ~rticles of incorporation and by-laws, and as authorized by its r~solution, the BORROWER shall take all necessary actions consistent there~ith to levy assessments sufficient to pay this loan as required by the terms of this contract and the promissory note. In the event the assessments levied by the BORROWER become insufficient to assure such repayment to the STATE, the Bo'RROWER shall immediately take all necessary action consistent with its statutoryl authority, its ~rticles of incorporation, bylaws and resolution, including, but not limited to, levying *dditional assessments to raise sufficient revenue to assure repaymJnt of the loan tb the STATE. I 12. Col,ateral During Repayment. The BORROWER shall not sell, convey, tassign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the CO ACCOUNT or any:of the revenues pledged to repay the loan herein, so long as any of the principal and i any accrued interest required by the Promissory Note Provisions df the contract remfin unpaid without the prior written concurrence of the STATE. I 13. Rertledies For Default. Upon default in the payments herein set forth to be made by the ~ORROWER, or default in the performance of any covenant or agreem1ent contained herlin, the STATE, at its option, may: I a. declare the entire principal amount and accrued interest then outstanding ifnmediatelY due and payable; i b. act upon the Promissory Note, Security Agreement, and Assignment Of Deposit fccount As Security; I c. CiiPply the funds contained in the CD ACCOUNT to the repayment of the loan; and/or d. ~ake any other appropriate action. I All rem~dies described herein may be simultaneously or selectively and successively enforce~. The provisions of this contract may be enforced by the STAT~ at its option without: regard to prior waivers of previous defaults by the BORROWER, tHrough judicial proceedings to require specific performance of this contract, or by such oth~r proceedings in law br equity as may be deemed necessary by the STATE to ensure coh,pliance with provisiqns of this contract and the laws and regulations under which t~is contract is executed. The STATE'S exercise of any or all of the remedies described h~rein shall not I Feasibility Report Loan Contract , , I , , Page 5 of 11