4) all of the BORROWER'S right, title and interest in and to that certain water lease dated September 7,
<br /> 1974, from Richard L. Beaghler, Mary Jane Gordon and A. J. Beagh/er to R. J. Seyfried and Anne
<br /> Seyfried, conveyed to the GRANTOR by an Assignment of Water Lease recorded in Book 1527,
<br /> Reception No. 2471505, of the records of the Clerk and Recorder of Weld County, Colorado, covering
<br /> the production of ground water and certain rights incident thereto beneath a tract of land situate in
<br /> Weld County, Colorado, described as follows: the South Half of the North Half (SV2 NY2) and the
<br /> Southeast Quarter (SE%) of Section 5, Township 3 North, Range 61 West of the 6th P.M., and
<br /> containing 320 acres more or less, together with all of the BORROWER'S right, title and interest, if any,
<br /> in and to Well Permit Nos. 18338-FP and 31655-FP.
<br /> 7. Collateral during repayment. The BORROWER shall not sell,c .y ssi•n,grant,transfer,mortgage,
<br /> pledge, encumber, or otherwise dispose of any collateral for this lo 4, di c ; - •ROJECT or any portion
<br /> thereof or the revenues pledged to repay the loan herein, so long . .y e ri ipal and any-accrued
<br /> interestrequired by the Promissory Note Provisions of the ct remain un 4 . hout the prior written
<br /> concurrence of the STATE.
<br /> 8. Remedies for default. Upon default in the payments her in jIII
<br /> iom by the BORROWER,
<br /> or default in the performance of any covenant or agreement contained herein, its option, may:
<br /> a. declare the entire principal amount and accrued interest then outstanding immediately due and
<br /> payable;
<br /> b. incur and pay reasonable expenses for repair, maintenance, and operatiCn of the PROJECT facilities
<br /> herein described and such expenses as may be necessary to cure the cause of default, which
<br /> expenditures shall be added to the principal of the loan amount;
<br /> c. take possession of the PROJECT facilities, repair, maintain, and operate Or lease them;
<br /> d. act upon the deed of trust, UCC DOCUMENT, and promissory note;
<br /> e. take any other appropriate action. 1
<br /> All remedies described herein may be simultaneously or selectively and successively enforced. The
<br /> provisions of this contract may be enforced by the STATE at its option without regard to prior waivers of
<br /> previous defaults by the BORROWER, through judicial proceedings to require specific performance of this
<br /> contract, or by such other proceedings in law or equity as may be deemed necessary by the STATE to ensure
<br /> compliance with provisions of this contract and the laws and regulations under which this contract is executed.
<br /> The STATE'S exercise of any or all of the remedies described herein shall not relieve the BORROWER of any of
<br /> its duties and obligations under this contract.
<br /> 9. In event of a conflict. In the event of conflict between the terms of this contract and conditions as set
<br /> forth in any of the appendices, the provisions of this contract shall control.
<br /> 10. Pledge of revenues. The BORROWER agrees that the specific revenues to be used to repay the STATE
<br /> shall come from the BORROWER'S WATER USER FEES, as authorized by resolution of the BORROWER, and any other
<br /> funds legally available to BORROWER tO repay the STATE. Furthermore, BORROWER agrees that
<br /> a. Revenues to repay this loan. The BORROWER hereby pledges such re!renues to repay the STATE
<br /> loan, agrees that these revenues shall be set aside and kept in an account separate from other
<br /> BORROWER revenues, warrants that these revenues shall not be used for any other purpose, and agrees
<br /> to provide the STATE a perfected security interest in these revenues such that the STATE has priority
<br /> over all other competing claims for such secured revenues.
<br /> b. Establish security interest in the revenues. The BORROWER agrees, that in order to provide a
<br /> security interest for the STATE irrevocably pledging such revenues, it shalO provide a completed and
<br /> Morgan County Quality Water District Page 4 of 9 Loan Contract
<br />
|