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repayment of this loan. In the event that the BORROWER applies funds from this
<br />account to repayment of the loan, the BORROWER shall replenish the account
<br />within ninety (90) days of withdrawal of the funds. The debt service reserve
<br />account or fund requirement is in effect until the loan is paid in full.
<br />9. Collateral. The BORROWER irrevocably pledges to the CWCB, for purposes of
<br />repayment of this loan, an interest in the Colorado -Big Thompson (C-BT) contractual
<br />rights for water, administered through the Northern Water Conservancy District
<br />(Northern Water), hereinafter referred to "COLLATERAL". The COLLATERAL as further
<br />described in Section 6 (COLLATERAL) of the PROJECT SUMMARY is authorized by the
<br />BORROWER'S AUTHORIZING RESOLUTION, and secured by the DEED OF TRUST (APPENDIX
<br />5).
<br />10. Collateral during Loan Repayment. The BORROWER shall not sell, convey, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the
<br />COLLATERAL or the PLEDGED PROPERTY SO long as any of the principal, accrued
<br />interest, and late charges, if any, on this loan remain unpaid, without the prior written
<br />concurrence of the CWCB. In the event of any such sale, transfer or encumbrance
<br />without the CWCB's written concurrence, the CWCB may at any time thereafter
<br />declare aU outstanding principal, interest, and late charges, if any, on this loan
<br />immediately due and payable.
<br />11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
<br />principal, all accrued interest, and late charges, if any, as specified in the PROMISSORY
<br />NOTE, the CWCB agrees to release and terminate any and all of the CWCB's right,
<br />title, and interest in and to the COLLATERAL and the PLEDGED PROPERTY.
<br />12. Warranties.
<br />a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT
<br />and by its representations herein, the BORROWER shall be estopped from
<br />asserting for any reason that it is not authorized or obligated to repay the loan to
<br />the CWCB as required by this CONTRACT.
<br />b. The BORROWER warrants that it has not employed or retained any company or
<br />person, other than a bona fide employee working solely for the BORROWER, to
<br />solicit or secure this CONTRACT and has not paid or agreed to pay any person,
<br />company, corporation, individual, or firm, other than a bona fide employee, any
<br />fee, commission, percentage, gift, or other consideration contingent upon or
<br />resulting from the award or the making of this CONTRACT.
<br />c. The BORROWER warrants that the PLEDGED PROPERTY and COLLATERAL for this
<br />loan are not encumbered by any other deeds of trust or liens of any party other than
<br />the CWCB or in any other manner, except for any existing lien(s) identified in Section
<br />5 (Schedule Of Existing Debt) of the PROJECT SUMMARY, which sets forth the position
<br />of the lien created by this CONTRACT in relation to any existing lien(s). Documentation
<br />establishing the relative priorities of said liens, if necessary, is attached to the PROJECT
<br />SUMMARY and incorporated herein.
<br />Loan Contract C150392
<br />Page 4 of 12
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