C150157 contract docs (2) - Laserfiche WebLink

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� d. the contract will be valid and binding against the BoRROwER if entered into by the CWCB. 8. Pledge Of Property. The BotzROwER irrevocably pledges to the CWCB for purposes of repayment of this loan: (1) revenues from assessments levied for that purpose as authorized by the BoRROwER's resolution(s) and (2) all of the BoRROwER's rights to receive said assessment revenues, hereinafter collectively referred to as the "Pledged Property." 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 Property. The CWCB shall have priority over all other competing claims for said Pledged Property, 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 neeessary 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 annual payment into its debt service reserve fund on the due date of its first annual loan payment and annually thereafter for the first ten years of repayment of this loan. In the event that the BORROWER applies funds from this account to repayment of the loan, the BoRROwER shall replenish the account within ninety (90) days of withdrawal of the funds. 9. Colla#eral. The collateral for this loan is described in Section 6(Collateral) of the Project Summary, and secured by the instrument(s) attached hereto as Appendix 5 and incorporated herein. 10. Collateral During Loan Repayment. The BoRROwER sha(I not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral or the Pledged Property so long as any of the principal, accrued interest, and late charges, if any, on this loan remain unpaid, without the prior written concurrence of the CWCB. In the event of any such sale, transfer or encumbrance without the " CWCB's written eoncurrence, the CWCB may at any time thereafter declare all outstanding principal, interest, and late charges, if any, on this loan immediately due Page 3 of 9