C150044 Paid in Full Contract

• Contract/PO #: C150044
• Contractor Name: Riverside Reservoir & Land Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

• •
Said general liability insurance shall name the STATE as additional insured. The BORROWER shall
provide the STATE with a certificate of said insurance and an additional insured endorsement, and
shall provide the STATE with documentation of renewals of said insurance. The STATE will not
disburse any loan funds without evidence of said insurance coverage. Throughout the life of this
contract, the STATE reserves the right to increase the abo of insurance so that said
amounts at a minimum correspond to the amount establi t ado Governmental
Immunity Act, now and as hereafter amended.
7. BORROWER'S Authority To Contract. The BORRO ,; ;II, • _ to its statutory authority,
articles of incorporation and by-laws, have its s • hp. de =' >• • - directors adopt
resolutions, irrepealable during the life of this loan, authorizin' th •_i .nd Secretary, on
behalf of the BORROWER, to do the following:
a. To enter into and comply with the terms of this contract and the promissory note, and
b. To levy assessments in an amount sufficient to pay the annual amounts due under this
contract, and to pledge assessment revenues and the BORROWER'S right to receive said
revenues for repayment of the loan, and
c. To place the assessment revenues pledged to make annual loan payments in a special
account separate and apart from other BORROWER revenues in accordance with the Pledge of
Property Provisions of this contract and
d. To make annual payments in accordance with the promissory note, and
e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of
Property Provisions of this contract, and
f. To pledge certain property of the Company as collateral for the loan and execute
documents necessary to convey a security interest in said property to the CWCB, and
g. To obtain a certificate of deposit to serve as collateral in the amount of one annual loan
payment as security for the loan, and execute an assignment of certificate of deposit as
described in the Collateral Provisions of this contract, and
h. To execute a Security Agreement and an Assignment of Deposit Account as Security to
secure the revenues pledged herein in accordance with the Pledge of Property Provisions of
this contract.
Said resolutions are attached hereto as Appendix 1 and incorporated herein.
8. Attorney's Opinion Letter. Prior to the execution of this contract by the STATE, the BORROWER
shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the
person signing for the BORROWER was duly elected or appointed and has authority to sign such
documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S
shareholders and board of directors have validly adopted resolutions approving this contract; that
there are no provisions in the BORROWER'S articles of incorporation or by-laws or any state or local
law that prevent this contract from binding the BORROWER; and that the contract will be valid and
binding against the BORROWER if entered into by the STATE.
9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and
evidencing this loan in an amount up to $405,000 at an interest rate of 4% per annum for a term
of 30 years is attached as Appendix 2 and incorporated herein.
Riverside Reservoir and Land Company Page 4 of 12 Loan Contract C150044