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� <br />BORROWER; <br />� <br />b. the resolutions of the BORROWER authorizing the execution and delivery of the <br />contract were duly adopted by the BORROWER board of directors and/or <br />stockholders <br />c. there are no provisions in the BoRROwER's articles of incorporation or bylaws or any <br />state or local law that prevent this contract from binding the BoRROwER; and <br />d. the contract will be valid and binding against the BoRROwER if entered into by the <br />CWCB. <br />8. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation <br />and bylaws, the BoRROwER shall take all necessary actions consistent therewith during <br />the term of this contract to levy assessments sufficient to pay this loan as required by <br />the terms of this contract and the Promissory Note, to cover all expenditures for <br />operation and maintenance and emergency repair services, and to maintain adequate <br />debt service reserves. In the event the assessments levied by the BoRROwER become <br />insufficient to assure such repayment to the CWCB, the BoRROwER shall immediately <br />take all necessary action consistent with its statutory authority, its articles of <br />incorporation and bylaws including, but not limited to, levying additional assessments to <br />raise sufficient revenue to assure r t loan. <br />9. Debt Service Reserve Account. a lish an aintain a debt senrice reserve <br />account, the BoRROwER shall de it �� al to one-tenth of an annual <br />payment into its debt service date of its first annual loan <br />payment and annually thereafte e irst ten years of repayment of this loan. In the <br />event that the BoRROwER applies funds from this account to repayment of the loan, <br />the BoRROwER shall replenish the account within ninety (90) days of withdrawal of the <br />funds. <br />10. Collateral. The collateral for this loan is described in Section 6(Collateral) of the <br />Project Summary, and secured by the instrument(s) attached hereto as Appendix 4 <br />and incorporated herein. <br />11. Collateral During Loan Repayment. The BoRROwER shall not sell, convey, assign, <br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral so <br />long as any of the principal, accrued interest, and late charges, if any, on this loan <br />remain unpaid, without the prior written concurrence of the CWCB. In the event of <br />any such sale, transfer or encumbrance without the CWCB's written concurrence, the <br />CWCB may at any time thereafter declare all outstanding principal, interest, and late <br />charges, if any, on this loan immediately due and payable. <br />12. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire <br />principal, all accrued interest, and late charges, if any, as specified in the Promissory <br />Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title, <br />and interest in and to the Collateral. <br />13. Warranties. <br />a. The BoRROwER warrants that, by acceptance of the loan under this contract and by <br />Page 3 of 10 <br />