C150049 Contract

• Contract/PO #: C150049
• Contractor Name: People's Ditch Company
• Contract Type: Loan
• County: Logan
• Loan Projects - Doc Type: Contract Documents

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annually thereafter for the first ten years of this loan. In the event that the Borrower applies
funds from this account to repayment of the loan, the Borrower shall replenish the account
within ninety(90) days of withdrawal of the funds.
13. Change of Ownership of Water Shares During Term of Contract. If the interest rate for
this loan is based on the CWCB's agricultural or blended agricultural and municipal and/or
commercial and/or industrial rates, the BORROWER agrees to notify the STATE of any change of
the ownership of the water rights represented by its shares from irrigation to municipal or
commercial or industrial use. The interest rate shall be revised when said rate would increase
the original interest rate by 0.5% or more. The parties shall amend this contract, including a
revised promissory note, to effect said change in interest rate.
14. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, transfer,
mortgage, pledge, encumber, or otherwise dispose of the property provided as security for this
loan, so long as any of the principal, all accrued interest, and late charges, if any, on this loan
remain unpaid, without the prior written concurrence of the STATE. In the event of any such
sale, 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 Note, Security Agreement, Assignment Of Deposit
Account As Security, and Assignment Of Certificate Of Deposit,
d. apply the funds contained in the CD ACCOUNT to the repayment of the loan;
e. 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 without regard to prior
waivers of previous defaults by the BORROWER, through judicial proceedings to require specific
performance of this contract, or by such other proceedings in law or equity as may be deemed
necessary by the STATE to ensure compliance with provisions of this contract and the laws and
regulations under which this contract is executed. The STATE'S exercise of any or all of the
remedies described herein shall not relieve the BORROWER of any of its duties and obligations
under this contract.
16. Progress Reports. The BORROWER shall, with the assistance of the CONSULTANT, prepare a
periodic progress report which contains a statement of the PROJECT costs expended for that
period and submit said statement to the STATE.
17. Periodic Inspections. Throughout the term of this contract, the BORROWER shall permit a
designated representative of the STATE to make periodic inspections of the PROJECT. Such
inspections are solely for the purpose of verifying compliance with the terms and conditions of this
contract. Furthermore, such inspections shall cover the condition of the PROJECT, operating
records, maintenance records, and financial records, and shall not be construed nor interpreted
as an approval of the actual design and/or construction of any element of the PROJECT facilities.
18. Adhere To Applicable Laws. The BORROWER shall strictly adhere to all applicable federal, state,