C153701 PIF Contract

• Contract/PO #: C153701
• Contractor Name: Fort Morgan, City of
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

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iii) The STATE will not enforce its security interest in exercising or temporarily assigning the CITY'S and/or
BORROWER'S CONTRACT RIGHTS under the Allotment Contract if default in payment is caused by an order
of the Colorado State Engineer prohibiting storage and release of water from Carter Lake Reservoir.
d. act upon the security interest in the collateral, and the promissory note;
e. take any other appropriate legal 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 entered into.
7. No sale or conveyance until the loan is repaid. Without the prior written concurrence of the STATE,the CITY
and the BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose
of its interest in the Allotment Contract or any portion thereof or the proceeds or water revenues pledged to repay
the loan herein or any other collateral, so long as any of the principal an . crued interest required by the
promissory note provisions of the contract remain unpaid.
8. This contract controls if there is a conflict. In the event of c-- t between t and conditions as set
forth in the any of the appendices, provisions of this contract shal .,o • . a ,
9. Pledge of revenues. The BORROWER and the CITY agree that the 'p 'c r♦a e to e pledged to repay
the STATE shall be the rates, fees, and other charges as authorized by city ordinanc-s • her funds legally
available to repay the STATE.
a. Pledge of sufficient revenues. The BORROWER hereby irrevocably pledges such revenues to repay the
STATE loan, and the CITY agrees that it will budget and appropriate such revenues and set aside and keep
in an account separate from other BORROWER or CITY revenues, and the BORROWER and the CITY warrant that
these revenues will not be used for any other purpose, and agree to provide the STATE a perfected security
interest such that the STATE has priority over all other competing claims for such secured revenues, except
the BORROWER'S Water Revenue Refunding and Improvement Bond, Series 1994. The STATE, the CITY and
the BORROWER recognize that the BORROWER has also pledged such water revenues to repay the BORROWER'S
Water Revenue Refunding and Improvement Bond, Series 1994, which evidence a loan from the Colorado
Water Resources and Power Authority, hereinafter called AUTHORITY. The STATE,the CITY and the BORROWER
agree that the CITY and the BORROWER will meet the requirements of Exhibit F of the loan contract between
the AUTHORITY and the CITY, acting by and through the BORROWER,to establish parity status of this loan with
the AUTHORITY'S loan for such revenues. The BORROWER and the CITY will provide the STATE with a copy
of the certificate from an independent certified public accountant that the BORROWER and the CITY have
submitted to the AUTHORITY in compliance with said Exhibit F.
b. Security interest in the revenues. The BORROWER and the CITY agree that, in order to provide a security
interest for the STATE irrevocably pledging such revenues on the date of execution of this contract, a
Uniform Commercial Code Security Agreement and Financing Statement will be provided, complete and
properly executed, incorporated herein as APPENDIX G, as referred to previously in the Collateral Provisions.
c. UCC agreement renewal. The BORROWER or CITY will, within thirty (30) days prior to the end of the
fourth year that this contract is in effect and every five (5) years thereafter, deliver to the STATE fully and
properly executed Continuation Statements(Form UCC-3) of the security interests(UCC Security Agreement
and Financing Statements) required by this contract.
d. Charges and fees for loan repayment. The CITY shall, pursuant to statutory authority and as authorized
by its ordinance, take all necessary actions consistent therewith to provide sufficient funds for adequate
operation and maintenance, emergency repair services, obsolescence reserves, debt reserves, and to
CITY OF FORT MORGAN, COLORADO, WATER
WORKS AND DISTRIBUTION ENTERPRISE Page 5 of 10 LOAN CONTRACT