C153726 Paid in Full Contract

• Contract/PO #: C153726
• Contractor Name: Tremont Mutual Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

7-42-104(2), C.R.S. (1986). In addition, in the event the assessments levied by the
BORROWER become insufficient to assure repayment to the STATE as required by the terms
and conditions of this contract, then the BORROWER shall immediately take all necessary
action consistent with its statutory authority, its articles of incorporation, by-laws and
resolutions, including, but not limited to, levying additional assessments to raise sufficient
revenue to assure repayment of the loan to the STATE.
d. Assessments for operations,maintenance and reser e BORROWIIR shall, pursuant
to its statutory auth'o4ity, , articles of incorporati resolutions, levy
assessments from time to time as necessa provi s for adequate
operation and maintenance, emergency repair., i s •bsoles reserves and debt
reserves. BORROWER shall deposit an amount eq al o • an annOal payment into
its reserve`debt'••service fund on an annual basis for t e' .r • this loan.
8. Collateral. Part of the security provided for this loan shall be a interest in an
undivided one hundred percent interest in the following, hereinafter referred to as COLLATERAL: all
revenues derived from handling fees paid by Pioneer Water and Irrigation, Inc. '• the BORROWER
pursuant to an Agreement recorded in the Office of the Clerk and Recorder of Morgae County on May
14, 1987, in Book 891 at Page 338. The BORROWER has executed a Conditional Assignment of
Contract Proceeds, attached as APPENDIX C and incorporated herein, assigning the STATE its right,
title and interest in and to the income from said handling fees in the event,of default l?y the BORROWER
under this contract, and has executed a UCC DOCUMENT, referenced above, to convey to the STATE
a security interest in all the revenues derived from said handling fees.
9. Collateral during repayment. The BORROWER shall not sell, convey, assign grant, transfer,
mortgage, pledge, encumber, or otherwise dispose of any collateral for this to , including the
assessments and handling fee revenues pledged to repay the loan herein, so to as any of the
principal and any accrued interest required by the Promissory Note Provisions of the contract remain
unpaid, without the prior written concurrence of the STATE.
10. 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 h rein, the STATE,
at its option, may:
a. declare the entire principal amount and accrued interest then outstanding mmediately due
and payable;
b. incur and pay reasonable expenses for repair, maintenance, and operatio of the PROJECT
facilities herein described and such expenses as may be necessary to c e the cause of
default, and add the amount of such expenditures to the principal of the lo•h amount;
c. act upon the UCC DOCUMENTS, Conditional Assignment of Contrac Proceeds and
promissory note;
d. take any other appropriate action.
All remedies described herein may be simultaneously or selectively and succe::ively enforced.
The provisions of this contract may be enforced by the STATE at its option withou 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 ay be deemed
necessary by the STATE to ensure compliance with provisions of this contract a d the laws and
regulations under which this contract is executed. The STATE'S exercise of any or al of the remedies
Tremont Mutual Ditch Company Page 5 of 10 Loan Contract