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30 calendar days from notification from the CWCB of either (i) completion of the PROJECT or <br /> (2) determination by the CWCB that the PROJECT will not be completed. Any such loan Funds <br /> so remitted to CWCB shall be applied to the principal payment of amounts due on the Loan. <br /> 7. BORROWER's Authority to Contract. The BORROWER warrants that it has full power and <br /> authority to enter into this CONTRACT. The execution and delivery of this CONTRACT and the <br /> performance and observation of its terms, conditions and obligations have been duly <br /> authorized by all necessary actions of the BORROWER. The BORROWER'S AUTHORIZING <br /> RESOLUTION(S) or ORDINANCE(S) are attached as APPENDIX 4 and incorporated herein. <br /> 8. Opinion Letters. Prior to the execution of this CONTRACT by the CWCB,the BORROWER shall <br /> submit to the CWCB a letter from its bond counsel stating as follows: <br /> a. the CONTRACT has been duly executed by officers of the BORROWER who are duly <br /> elected or appointed and are authorized to execute the CONTRACT and to bind the <br /> BORROWER;and <br /> b. the ORDINANCE of the BORROWER authorizing the execution and delivery of the <br /> CONTRACT was duly adopted by the governing bodies of the BORROWER; and <br /> c. there are no provisions in the Colorado Constitution or any other state or applicable <br /> and binding local law that prevent this CONTRACT from binding the BORROWER;and <br /> d. the CONTRACT will be valid and binding against the BORROWER if entered into by the <br /> CWCB subject to typical limitations related to bankruptcy, police power, and creditor's <br /> rights generally. <br /> 9. Pledge of Revenues. The Borrower irrevocably (but not exclusively) pledges to the CWCB, <br /> for the purpose of repaying the LOAN AMOUNT, the PLEDGED REVENUES, in such amount as is <br /> necessary to make each annual payment due under this LOAN CONTRACT. Such pledge of the <br /> PLEDGED REVENUES is on parity with the loans identified in SECTION 5 OF APPENDIX i (the <br /> "EXISTING PARITY LOANS") and any additional indebtedness that may be secured by the <br /> PLEDGED REVENUES in the future that is incurred in accordance with SECTION B.9.E. hereof, <br /> (the "ADDITIONAL PARITY INDEBTEDNESS," and together with the EXISTING PARITY LOANS, the <br /> "PARITY INDEBTEDNESS.") <br /> a. Segregation of Pledged Revenues. The PLEDGED REVENUES shall be accounted for and <br /> maintained in an account separate from other BORROWER revenues at all times. The <br /> PLEDGED REVENUES shall be used first to pay debt service on the LOAN AMOUNT and all other <br /> PARITY INDEBTEDNESS on an equal basis and thereafter may be used for any and all other <br /> expenses. <br /> b. Establish Security Interest. The BORROWER has duly executed a SECURITY AGREEMENT, <br /> attached hereto as APPENDIX 5 and incorporated herein, to provide a security interest to the <br /> CWCB in the PLEDGED REVENUES. The lien of this LOAN CONTRACT on the PLEDGED REVENUES <br /> shall have priority over all other competing claims with respect to the PLEDGED REVENUES, <br /> except for the parity lien on the PLEDGED REVENUES of any PARITY INDEBTEDNESS. <br /> Page 4 of 14 <br />