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L <br />and (b) consistent with both the statutory pucposes of this <br />contract and the limitations of the statutory authotity under <br />which it is made. <br />I. Upon completion of repayment to the State in the amount of <br />Four Hundred Focty-Three Thousand Four Hundced Thirty-Seven <br />Dollacs and Twenty-Five Cents ($443,437.25), as set fotth in <br />paraqraph A.13. above of this contract, the State aqrees to <br />convey to the Contractoc all of the State's riqht, title, and <br />interest in and to the project and any other property described <br />in paraqraph A.14. above by deed or other proper conveyance. <br />J. The Colorado Water Conservation Boacd, its aqents and <br />employees, is heteby designated as the aqent of the State for <br />the purpose of this contcact. <br />K. The Contracto= aqLees and understands that sections <br />37-60-119 throuqh 37-60-122, CRS, as amended, require that the <br />loan of money by the State to the Contractor for this water <br />project be conditioned upon the repayment of the Loan to the <br />State. The Contractoc hereby agrees to take any and all <br />actions necessary to quarantee such repayment as ptovided <br />herein includinq, without beinq limited to, the actions <br />specified in this contract. <br />L. The Contracto= agrees that the specific revenues to be <br />pledqed to Lepay the State shall include, without beinq limited <br />Co, an assessment levied for that purpose as authorized by <br />Resolution of the Contractoc. The Contractor hereby pledqes <br />such assessment cevenues to repay the State loan, waLrants that <br />these tevenues will not be any other purpose, and <br />aqrees to provide the Sta�� ted security interest in <br />the form provided by the S ir=evo�y pledginq such <br />cevenues on the date of execu��Ft Tt� contLact. <br />M. The Contractor watr t has duly passed, an <br />ordinance by its city c� cil, as provided in its city charte=, <br />authorizing: the Contcactor to enter into this contract with <br />the State to borrow the pcincipal sum of Two Hundred Fifty <br />Thousand Dollars ($250,000); fixinq utility rates which will <br />produce Levenues sufficient to pay off this contract loan <br />pursuant to its terms and to dischatge this lawful <br />indebtedness; the settinq aside of this revenue in a epecial <br />fund separate and apart from other Contcactot revenues to <br />aesure repayment of this revenue to the State; and the siqninq <br />of a security interest in such revenues in favor of the State <br />to secure the repayment. The passaqe of the necessary <br />ordinances by the Cont=actor and the security interest of the <br />Contractot are conditions precedent to State pecformance and <br />ahall be attached heteto and included herein by thie refe=ence <br />(Exhibit C). <br />N. The Contractor warrants that in the event of a default by <br />the Contracto= in the cepayment to the State, and upon written <br />notice thereof ftom the State, the Contractor shall, pursuant <br />to its city chacter, immediately take all necessaLy actione to <br />levy an additional assessment and to pledqe additional cevenues <br />in sufficient amount and in a timely manner to cure the default <br />and to repa� ths State as reqUired by the contract. Such <br />additional revenues shall be deemed covered by the existing <br />security intetest. <br />O. The ContLactor warrants that the security interest executed <br />by the Contractor in favor of the State to secure repayment of <br />this loan is a valid security interest which shall be bindinq <br />aqainst the Contractoc and that the Contractor has perfected <br />this security interest such that the State has priority over <br />all other competinq claims for such secnred revenues. <br />P. The Contractor warrants that by acceptance of the loan <br />money pursuant to the te�ms of this contract and by the <br />Paqe 7 of 10 Paqes <br />