C150272 Contract

• Contract/PO #: C150272
• Contractor Name: Farmers Pawnee Canal Company, The
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

7. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the
BORROWER shall submit to the CWCB a letter from its attorney stating that it is the
attorney's opinion that
a. the contract has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;
b. the resolutions of the BORROWER authorizing the execution and delivery of the
contract were duly adopted by the BORROWER's board of directors and/or
stockholders
c. there are no provisions in the BORROWER'S articles of incorporation or bylaws or
any state or local law that prevent this contract from binding the BORROWER; and
d, the contract will be valid and binding against the BORROWER if entered into by the
CWCB.
8. Pledge Of Property. The BORROWER 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 necessary
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
Loan Contract C150272
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