C150392 Contract

• Contract/PO #: C150392
• Contractor Name: Sylvan Dale Ranch, LLLP
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

a. the CONTRACT has been duly executed by GENERAL PARTNER of the Sylvan Dale
Ranch, Limited Liability Limited Partnership who is authorized to execute the
CONTRACT and to bind the BORROWER;
b. the resolutions authorizing the execution and delivery of the CONTRACT were duly
adopted by the GENERAL PARTNER of the Sylvan Dale Ranch, Limited Liability
Limited Partnership;
c. there are no provisions in the partnership agreement for the Sylvan Dale Ranch,
Limited Liability Limited Partnership or any state or local law that prevent this
CONTRACT from binding the BORROWER;
d. there are no provisions in any of the Sylvan Dale Ranch, Limited Liability Limited
Partnership's formation and governing documents that would invalidate the
approval of this loan;
e. 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: the legally available operating revenues and all of
the BORROWER's rights to receive said revenues, hereinafter collectively referred to as
the "PLEDGED PROPERTY".
The BORROWER further agrees to the following:
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 partnership agreement, the BORROWER
shall take all necessary actions consistent therewith during the term of this
CONTRACT 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 revenues become insufficient to assure such repayment to the
CWCB, the BORROWER shall immediately take all necessary action consistent with
its partnership agreement to raise sufficient revenue to assure repayment of this
loan.
d. Debt Service Reserve Account or Fund. To establish and maintain the debt
service reserve account, the BORROWER shall deposit an amount equal to one -
tenth of an annual payment into its debt service reserve fund on the due date of its
first annual loan payment and annually thereafter for the first ten years of
Loan Contract C150392
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