C150157 contract docs ‎(2)‎

• Contract/PO #: C150157
• Contractor Name: Grand Mesa Reservoir Company
• Contract Type: Loan
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

and payable.
11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
principal, all accrued interest, and late charges, if any, as specified in the Promissory
Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
and interest in and to the Collateral and the Pledged Property.
12. Warranties.
a. The BoRROwER warrants that, by acceptance of the loan under this contract and by
its representations herein, the BoRROwER shall be estopped from asserting for any
reason that it is not authorized or obligated to repay the loan to the CWCB as
required by this contract.
b. The BORROWER warrants that it has not employed or retained any company or
person, other than a bona fide employee working solely for the BORROWER, to
solicit or secure this contract and has not paid or agreed to pay any person,
company, corporation, individual, or firm, other than a bona fide employee, any fee,
commission, percentage, gift, or other consideration contingent upon or resulting
from the award or the making of this contract.
c. The BoRROwER warrants that the Pledged Property and Collateral for this loan
are not encumbered by any other deeds o# trust orliens of any party other than the
CWCB or in any other manner, except for any existing lien(s) identified 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). Documentation
establishing the relative priorities of said liens, if necessary, is attached to the
Project Summary and incorpocated herein.
13. Change of Ownership of Water Shares During Term of Contract. If the interest
rate for this loan is based on the CWCB's agricultural or blended agricultural and
municipal and/or commercial and/or industrial rates, the BoRROwER agrees to nofify
the CWCB of any change of the ownership of the water rights represented by its
shares from irrigation to municipal or commercial or industrial use. The interest rate
shall be revised when said change in ownership� would increase the original interest
rate by 0.5% or more. The parties shall amend this contract, including a revised
promissory note, to effect said change in interest rate.
14. Remedies For Default. Upon default in the payments to be made by the BoRROwER
under this contract, or default in the performance of any covenant or agreement
contained herein, the CWCB, at its option, may:
a. suspend this contract and withhold further loan disbursements pending corrective
action by the BORROWER, and if the BORROWER d02S not cure the default as
provided for below, permanently cease loan disbursements and deem the PRO�ECT
substantially complete;
b. declare the entire principal amount, accrued interest, and late charges, if any, then
outstanding immediately due and payable;
c. exercise its rights under any appendices to this contract, including, but not limited to,
the Promissory Note, Security Agreement, and/or any instrument securing collateral;
and/or
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