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Property." <br /> a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the <br /> pledged revenues in an account separate from other BORROWER revenues, and <br /> warrants that these revenues will not be used for any other purpose. <br /> b. Establish Security Interest. The BORROWER has duly executed a Security <br /> Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a <br /> security interest to the CWCB in the Pledged Property. The CWCB shall have <br /> priority over all other competing claims for said Pledged Property, except for the <br /> liens of the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing <br /> Debt) of the Project Summary, which sets forth the position of the lien created by <br /> this contract in relation to any pre-existing lien(s). <br /> c. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation <br /> and bylaws, the BORROWER shall take all necessary actions consistent therewith <br /> during the term of this contract to levy assessments sufficient to pay this loan as <br /> required by the terms of this contract and the Promissory Note, to cover all <br /> expenditures for operation and maintenance and emergency repair services, and to <br /> maintain adequate debt service reserves. In the event the assessments levied by <br /> the BORROWER become insufficient to assure such repayment to the CWCB, the <br /> BORROWER shall immediately take all necessary action consistent with its statutory <br /> authority, its articles of incorporation and bylaws inchtt,tlutpotlirlkted to, levying <br /> additional assessments to raise sufficient revenue to.A4144e0ayttietit of this loan. <br /> d. Debt Service Reserve Account. To establish and maintain The debt service <br /> reserve account, the BORROWER shall deposi�r o�.mt #al-tq 4 fle4enth of an <br /> annual payment into its debt service reserve fund these % a its, irst annual <br /> loan payment and annually thereafter for the first Yen•j earg=� went of this <br /> loan. In the event that the BORROWER applies funds from this account to <br /> repayment of the loan, the BORROWER shall replenish the account within ninety <br /> (90) days of withdrawal of the funds. <br /> 8. Collateral. The collateral for this loan is described in Section 6 (Collateral) of the <br /> Project Summary, and secured by the instrument(s) attached hereto as Appendix 5 <br /> and incorporated herein. <br /> a. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, <br /> encumber, or otherwise dispose of the collateral for this loan, including the <br /> Pledged Property, so long as any of the principal, accrued interest, and late <br /> charges, if any, on this loan remain unpaid, without the prior written concurrence <br /> of the CWCB. In the event of any such sale, transfer or encumbrance without <br /> the CWCB's written concurrence, the CWCB may at any time thereafter declare <br /> all outstanding principal, interest, and late charges, if any, on this loan <br /> immediately due and payable. <br /> 9. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire <br /> principal, all accrued interest, and late charges, if any, as specified in the Promissory <br /> Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title, <br /> and interest in and to the collateral and the property pledged to repay this loan. <br /> Page 3 of 9 <br />