C153656 Paid in Full Contract

• Contract/PO #: C153656
• Contractor Name: Loloff Lateral Ditch Company
• Contract Type: Loan
• County: Weld
• Loan Projects - Doc Type: Contract Documents

I. Upon completion of repayment to the State in the amount of One Hundred Sixty-Six
Thousand Six Hundred Eighty Dollars and Eighty Cents ($166,680.80), as set forth in
paragraph A.13. above of this contract, the State agrees to convey to the Contractor all of
the State's right, title, and interest in and to the project and e r erty described
in paragraph A.14. above by deed or other proper conveya
J. The Colorado Water Conservation Board,its agen . i i . el is hereby designated
as the agent of the State for the purpose of this con e
ti
K. The Contractor agrees and understands that sections 37-60-119 throu: 2,CRS,
as amended, require that the loan of money by the State to the Contractor for this water
project be conditioned upon the repayment of the loan to the State. The Contractor hereby
agrees to take any and all actions necessary to guarantee such repayment as provided herein
including, without being limited to, the actions specified in this contract.
L. The Contractor agrees that the specific revenues to be pledged to repay the State shall
include, without being limited to, an assessment levied for that purpose as authorized by
Resolution of the Contractor. The Contractor hereby pledges such assessment revenues to
repay the State loan, warrants that these revenues will not be used for any other purpose,
and agrees to provide the State a perfected security interest in the form provided by the
State irrevocably pledging such revenues on the date of execution of this contract.
M. The Contractor warrants that it has duly passed, or will pass, a Resolution (Exhibit A)
by its Board of Trustees, as provided in its By-Laws, authorizing: (a) the Contractor to
enter into this contract with the State to borrow the principal sum of Seventy-One
Thousand Five Hundred Dollars ($71,500); (b) to make and levy assessment(s) sufficient to
pay off this contract loan pursuant to its terms and to discharge this lawful indebtedness; (c)
to set aside this assessment revenue in a special fund separate and apart from other
Contractor revenues to assure repayment of this revenue to the State; and (d) to sign a
security interest in such assessment revenues in favor of the State to secure the repayment.
Copies of such security interest (Uniform Commercial Code--Security Agreement and
Uniform Commercial Code--Financing Statement)shall be attached hereto and incorporated
herein as Exhibits E and F, respectively. The Resolution of the Contractor and the security
interest of the Contractor are conditions precedent to State performance.
N. The Contractor warrants that in the event of a default by the Contractor in the
repayment to the State, and upon written notice thereof from the State,the Contractor shall,
pursuant to its By-Laws, immediately take all necessary actions to levy an additional
assessment and to pledge additional revenues in a sufficient amount and in a timely manner
to cure the default and to repay the State as required by the contract. Such additional
revenues shall be deemed covered by the existing security interest.
O. The Contractor warrants that the security interest executed by the Contractor in favor
of the State to secure repayment of this loan is a valid security interest which shall be
binding against the Contractor and that the Contractor has perfected this security interest
such that the State has priority over all other competing claims for such secured revenues.
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