C153835A PIF

• Contract/PO #: C153835A
• Contractor Name: Greeley & Loveland Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, articles of
incorporation and by-laws, and as authorized by its resolution, the BORROWER shall take all
necessary actions consistent therewith to levy assessments sufficient to pay this loan as
required by the terms of this contract and the promissory note. In the event the assessments
levied by the BORROWER become insufficient to assure such repayment to the STATE, the
BORROWER shall immediately take all necessary action consistent with its statutory authority,
its articles of incorporation, bylaws and resolution, 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 Reserves. Pursuant to its statutory
authority, articles of incorporation, by-laws, and resolutions, the BORROWER shall levy
assessments from time to time as necessary to provide sufficient funds for adequate
operation and maintenance, emergency repair services, obsolescence reserves and debt
service reserves. BORROWER shall deposit an amount equal to one-tenth of an annual
payment into its debt service reserve fund on an annual basis for the first ten years of this
loan.
14. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify
the STATE of any change of the use of the water rights represented by its shares from irrigation
to municipal or commercial use, at which time the STATE shall adjust the interest rate, effective
as of the date of change, on that portion of the outstanding loan amount corresponding to the
percentage of shares for which the use has been changed to the CWCB's municipal or
commercial rate in effect at the time of the change of use of the water rights. The parties shall
execute a contract amendment to effect said change in interest rate.
15. 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 herein, the
STATE, at its option, may:
a. declare the entire principal amount and accrued interest then outstanding immediately due
and payable;
b. incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT
facilities herein described and such expenses as may be necessary to cure the cause of
default, and add the amount of such expenditures to the principal of the loan amount;
c. take possession of the PROJECT facilities, repair, maintain, afadp ratP,,,or lease them;
d. exercise its rights under the Promissory Note, Security Agree , isign ent Of Deposit
Account As Security, and Deed Of Trust,
e. take any other appropriate action. 4
=-R I
All remedies described herein may be simultaneously or selectiv r an ccs enforced.
The provisions of this contract may be enforced by the STATE at its option without 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 may be deemed
necessary by the STATE to ensure compliance with provisions of this contract and the laws and
regulations under which this contract is executed. The STATE'S exercise of any or all of the
Greeley & Loveland
Irrigation Company Page 7 of 13 Loan Contract