C150379 Contract - Laserfiche WebLink

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SECTION 5—SCHEDULE OF EXISTING DEBT No other debt, backed by collateral described in Section 6 below, exists. SECTION 6 -COLLATERAL To secure repayment of this loan, the BORROWER shall pledge (1) its assessment revenues backed by a rate covenant; and (2) the purchased Water Rights, which consist of two (2) shares in the Farmers High Line Canal and Reservoir Company, valued at an amount equal to or greater than 110% of the LOAN AMOUNT, more particularly described in the attached DEED OF TRUST (COLLATERAL) and evidenced by the certificate number(s) listed in the STOCK ASSIGNMENT encumbering all the shares and by execution of the SECURITY INSTRUMENTS, including the SECURITY AGREEMENT, DEED OF TRUST and STOCK ASSIGNMENT, attached hereto as Appendices 4, 5, and 6 respectively and incorporated herein. This is in accordance with CWCB Financial Policy #5 (Collateral). The Stock Assignments shall become effective solely in the event of an issuance by a Colorado District Court of an order authorizing a foreclosure sale of said shares of stock pursuant to Rule 120 of the Colorado Rules of Civil Procedure. a. The BORROWER shall have the certificate(s) for the shares issued in both the BORROWER'S and the CWCB's names, and shall give physical custody of the stock certificate(s) to the CWCB, which shall deposit the certificate(s) at the State Treasurer's Office for safekeeping. b. The BORROWER shall retain both the responsibility for paying assessments on and the privilege of voting said shares. SECTION 7— ADDITIONAL CONDITIONS & CONTRACT REQUIREMENTS No Construction. CWCB and BORROWER hereby acknowledge and agree that the PROJECT does not include a construction component and that the distribution of loan proceeds will occur at a closing for the purchase of the Water Rights. SECTION 8-CONSTRUCTION FUND PROGRAM PROCEDURES FOR WATER PURCHASE PROJECTS The BORROWER shall submit, in writing, copies of the sales agreement and the appraisal for the Water Rights including, but not limited to, the name of the seller, cost, closing date, appraisal value and support documentation prior to disbursal of loan funds. The BORROWER shall pay all of the expenses related to the PROJECT when such bills are due. SECTION 9—ELIGIBLE EXPENSES FOR WATER PURCHASE PROJECTS. A. Engineering associated with the feasibility report prepared as a requirement for this loan and associated with evaluating the suitability of the Water Rights for purchase by the BORROWER. B. Interest during completion of the PROJECT pursuant to Paragraph A.4 of the LOAN CONTRACT. C. Legal services for review of engineering services contracts and this LOAN CONTRACT. D. Purchase of the Water Rights. Appendix 1 to Loan Contract C150379 Page 2 of 3