C150293 contract docs

• Contract/PO #: C150293
• Contractor Name: North Sterling Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

, attomey's opinion that
a. the contract has been duly executed by ofFcers of the BoRROwER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;
b. the resolutions or ordinances of the BoRROwER authorizing the execution and delivery
of the contract were duly adopted by the goveming bafies of the BoRROwER;
c. there are no provisions in the Colorado Constitution or any other state or local law that
prevent this contract from binding the BORROwER;
d. the contract will be valid and binding against the BORROwER if entered into by the
CWCB; and
e. the election held by the Borrower to obtain voter approval of this loan met all
requirements of the Colorado Constitution or any other state or local law.
s. Pledge of revenues. The BoRRO�►vER irrevocably pledges #o the CWCB, for purposes o#
repayment of this toan, revenues levied for that purpose as authorized in Appendix 3 and
any other funds legally available to the BoRROw�R, in an amount sufficient to pay the
annual payment due under this contract ("Pledged Revenues"). Further, th@ BORROWER
agrees to:
a. Segregation of Pledged Revenues. The BoRROwER shall set aside and keep the
Piedged Revenues in an account separate from other BoRROw�R revenues, and
warrants that these revenues will not be used for any other purpose.
b. Establish Security Interest. The BORROWER has duiy executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Revenues. The CWCB shail have
priority over all other competing claims for said revenues, except for the liens of the ��
BORROWER's existing lo�r�s as listed in Section 5(Schedule of Existing Deb#), of the
Project Summary, which sets forth the position of the lien created by this contract in
retation to any existing lien(s).
c. Rate Covenant. Pursuant to its statutory authority and as permitted by law, the
BoRROwER shail take a11 necessary actions consistent therewitfi during the term of
this contract to establish, levy and collect rates, charges and fees as described in
Appendix 3, in amounts 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, including obtaining voter approval, if necessary, of increases in
the BORROWER's rate schedule or taxes, if applicable.
d. Debt Service Reserve Account. To establish and maintain the debt service
reserve account, the BORROw�R shali deposit an amount equai 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 thereafier for the firs# ten years of repayment of this loan.
In the event that the BoRROwER applies funds from this account to repayment of
the loan, the BoRROw�� shall replenish the account within ninety (90) days of
Loan Contract C150293
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