C150345 Feasibility Study - Laserfiche WebLink

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SECTION 5 - Members owning Twenty Two Road Lateral Company shares may sell shares to other Lateral members. Twenty Two Road Lateral Company must be informed of such exchanges so that share ownership records are maintained and assessments are updated. SECTION 6 - Members owning Twenty Two road Lateral Company Shares may exchange their shares back for GVIC shares when the CWCB loan has been paid and GVIC shares are no longer needed for collateral. The member is responsible for the GVIC transfer fee. SECTION 7 - The Board of Directors may allow members to exchange their Twenty Two Road Lateral Company Shares for GVIC shares it owns prior to the date the CWCB's loan is fully paid provided that 1. those shares are no longer needed as collateral considering the reduced principal owed, 2. such exchange does not harm the financial security of the Twenty Two Road Lateral Company, and 3. those GVIC shares will no longer be assigned to Twenty Two Road Lateral's Head Gate. The member is responsible for the GVIC transfer fee. SECTION 8 - In the event a shareholder's property changes ownership, the Twenty Two Road Lateral Company Shares owned by the member will go with the property and become the property of the new owner. The new owner will then become responsible for assessment payments. SECTION 9 - If a shareholders property is subdivided into two or more parcels and each parcel receives Twenty Two Road Lateral Company shares, then the new owners are each responsible for paying the full Lateral assessments on the shares they receive. If a Home Owners Association (HOA) is the recipient of Twenty Two Road Lateral Company Shares the HOA is responsible for paying assessments on each of the parcels in the HOA. SECTION 10 — Twenty Two Road Lateral Company has a direct claim against members for unpaid assessments. Water deliveries may be shut off to any members who have not paid their assessment. To protect the Twenty Two Road Lateral Company from default any shareholder who fails to make assessment payments and such failure could cause Twenty Two Road Lateral Company to default on it's loan payments to CWCB, the Board of Directors is authorized to liquidate a sufficient number of Twenty Two Road Lateral Company Shares owned by those in arrears by selling an equivalent number of GVIC shares in order to make up for those missing assessment payments. Share holders who forfeit all their Twenty Two Road Lateral Company Shares will no longer receive irrigation water from the Lateral. In order to receive water from the Lateral a delinquent shareholder would have to procure new GVIC shares and exchange those GVIC shares for Twenty Two Road Lateral Company shares and pay any and all assessments owed. 5