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other property described in paragraph A.14. above by deed or other <br />proper conveyance. <br />J. The Colorado Water Conservation Board, its agents and <br />employees, is hereby designated as the agent of the State for the <br />purpose of this contract. <br />K. The Contractor agrees and understands that sections 37 -60 -119 <br />through 37 -60 -122, CRS, as amended, require that the loan of money <br />by the State to the Contractor for this water project be <br />conditioned upon the repayment of the loan to the State. The <br />Contractor hereby agrees to take any and all actions necessary to <br />guarantee such repayment as provided herein including, without <br />being limited to, the actions specified in this contract. <br />L. The Contractor agrees that the specific revenues to be pledged <br />to repay the State shall include, without being limited to, an <br />assessment levied for that purpose as authorized by Resolution of <br />the Contractor. The Contractor hereby pledges such assessment <br />revenues to repay the State loan, w rants that these revenues will <br />not be used for any other purpos d agLr e s to provide the State <br />a perfected security interest a provided by the State <br />irrevocably pledging such reven"R to of execution of this <br />3s <br />contract. <br />M. The Contractor warrants t ate i' -fias duly passed a Resolution <br />(Exhibit A) by it stockholde '-'$as' provided in its By -Laws, <br />authorizing: he Contractor t ` " y <br />g: 4�_„ ��`er into this contract with the <br />State to borrow the principal si,'of One Million Six Hundred Fifty <br />Thousand Dollars ($1,650,000); 'to make and levy assessment(s) <br />sufficient to pay off this contract loan pursuant to its terms and <br />to discharge this lawful indebtedness; to set aside this assessment <br />revenue in a special fund separate and apart from other Contractor <br />revenues to assure repayment of this revenue to the State; and to <br />sign a security interest in such assessment revenues in favor of <br />the State to secure the repayment. Copies of such security <br />interest (Uniform Commercial Code -- Security Agreement and Uniform <br />Commercial Code -- Financing Statement) shall be attached hereto and <br />incorporated herein as Exhibit E and F, respectively. The <br />Resolution of the Contractor and the security interest of the <br />Contractor are conditions precedent to State performance. <br />N. The Contractor warrants that in the event of a default by the <br />Contractor in the repayment to the State, and upon written notice <br />thereof from the State, the Contractor shall, pursuant to its By- <br />Laws, immediately take all necessary actions to levy an additional <br />assessment and to pledge additional revenues in a sufficient amount <br />and in a timely manner to cure the default and to repay the State <br />as required by the contract. Such additional revenues shall be <br />deemed covered by the existing security interest. <br />O. The Contractor warrants that the security interest executed by <br />the Contractor in favor of the State to secure repayment of this <br />loan is a valid security interest which shall be binding against <br />the Contractor and that the Contractor has perfected this security <br />interest such that the State has priority over all other competing <br />claims for such secured revenues. <br />P. The Contractor warrants that by acceptance of the loan money <br />pursuant to the terms of this contract and by the Contractor's <br />representation herein, the Contractor shall be estopped from <br />asserting for any reason that it is not authorized or obligated to <br />repay the loan money to the State as required by this contract. <br />Page 7 of 10 pages <br />