C150023 DeAuth Contract - Laserfiche WebLink

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the STATE, the BORROWER shall immediately take all necessary action consistent with its statutory authority, its articles of incorporation, bylaws and resolution, including, but not limited to, levying additional assessments to raise sufficient revenue to assure repayment of the loan to the STATE. d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory authority, articles of incorporation, by -laws, and resolutions, the BORROWER shall levy assessments from time to time as necessary to provide sufficient funds for adequate operation and maintenance, emergency repair services, obsolescence reserves and debt service reserves. BORROWER shall deposit an amount equal to one -tenth of an annual payment into its debt service reserve fund one year from the first loan disbursement, and annually thereafter for the first ten years of this loan. 13. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify the STATE of any change of the use of the water rights represented by its shares from irrigation to municipal or commercial use, at which ti STATE shall adjust the interest rate on that portion of the outstanding loan ount" corresponding to the percentage of shares for which the use has been changed t th CWCB's municipal or commercial rate in effect at the time of the chang f use of t water rights. The parties shall execute a contract amendment to effect said c nge in interest rate. 14. Collateral During Repayment. ThA BOR wER shall not sell, convey, assign, grant, transfer, mortgage, pledge encum or herwise dispose of the property provided as security for this loan, s Ion as any o e principal, all accrued interest, and late charges, if any, on this loan rem npaid, without the prior written concurrence of the STATE. In the event of any such le, transfer or encumbrance without the STATE'S written concurrence, the STATE may at any time thereafter declare all outstanding principal and interest on this loan immediately due and payable. 15. Remedies For Default. Upon default in the payments herein set forth to be made by the BORROWER, or default in the performance of any covenant or agreement contained herein, the STATE, at its option, may: a. declare the entire principal amount and accrued interest then outstanding immediately due and payable; b. incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT facilities herein described and such expenses as may be necessary to cure the cause of default, and add the amount of such expenditures to the principal of the loan amount; c. exercise its rights under the Promissory dote, Security Agreement, Assignment Of Deposit Account As Security, and Deed Of Trust, d. take any other appropriate action. All remedies described herein may be simultaneously or selectively and successively enforced. The provisions of this contract may be enforced by the STATE at its option Ryan Gulch Reservoir Company Page 7 of 13 Loan Contract