C150041 PIF

• Contract/PO #: C150041
• Contractor Name: Woodchuck Ditch Comapny
• Contract Type: Loan
• Loan Projects - Doc Type: Repayment Information

withdrawn by the STATE for this purpose shall be replenished by the BORROWER within sixty
days after such withdrawal. The STATE shall not disburse any loan funds under this contract
until the BORROWER has established the CD ACCOUNT.
Additional security provided for this loan, as evidenced by the executed Deed of Trust
attached as Appendix 4 and incorporated herein, shall be an undivided one hundred percent
(100%) interest in a 400-foot portion of the BORROWER'S ditch, as more particularly described
in the attached Deed of Trust, hereinafter referred to as "collateral."
12. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for
purposes of repayment of this loan revenues from assessments levied for that purpose as
authorized by the BORROWER'S resolution and all of the BORROWER'S rights to receive said
assessment revenues from its members (hereinafter collectively referred to as the
pledged property"). Furthermore, BORROWER agrees that
a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees to
set aside and keep the pledged revenues in an account separate from other BORROWER
revenues, and warrants that it shall not use the pledged revenues for any other purpose.
b. Establish Security Interest. The BORROWER agrees that, in order to provide a security
interest for the STATE in the pledged property so that the STATE shall have priority over all
other competing claims for said property, it shall execute a Security Agreement, attached
hereto as Appendix 5 incorporated herein. The BORROWER acknowledges that the STATE
shall perfect its security interest in the BORROWER'S right to receive assessment revenues
by filing a UCC-1 Form with the Colorado Secretary of State.
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- f i t r u to assure repayment
of the loan IL) LI le rH 1 t. it
d. Assessments For Operations, Maintenace And. Reserves. Pursua t to its statutory
authority, articles of incorporation, by-laws, r so ' ' t BO OWER shall levy
assessments from time to time as necess o if
, -, ffi i t for adequate
operation and maintenance, emergency repair services, obso escence reserves and debt
service reserves. BORROWER shall deposit an amount equal to one-tenth of an annual
payment into its debt service reserve fund one year from the first loan disbursement, and
annually thereafter for the first ten years of this loan. In the event that the Borrower
applies funds from this account to repayment of the loan, the Borrower shall replenish the
account within ninety (90) days of withdrawal of the funds.
13. 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, at its discretion, may adjust the
interest rate on that portion of the outstanding loan amount corresponding to the percentage of
Woodchuck Ditch Company Page 6 of 13 Loan Contract