C153742 DOT Release

• Contract/PO #: C153742
• Contractor Name: Beaver Park Water, Inc.
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

a. Revenues for this loan are to be kept separate. The BORROWER hereby pledges such
revenues to repay the STATE loan, agrees that these revenues shall be set aside and kept in
an account separate from other BORROWER revenues, and warrants that these revenues shall
not be used for any other purpose.
b. Establish security interest in the revenues. The BORROWER agrees that, in order to provide
a security interest for the STATE in the pledged revenues so that the STATE shall have priority
over all other competing claims for such revenues, it shall execute a Security Agreement,
attached as Appendix C and incorporated herein. Furthermore, the BORROWER acknowledges
that the STATE shall perfect its security interest by filing a Uniform Commercial Code
Financing Statement with the Colorado Secretary of State.
c. Assessments for repayment of the loan. The BORROWER shall, pursuant to its statutory
authority, articles of incorporation and by-laws, and as authorized by its resolution, annually
seek from its stockholders sufficient assessments, and to take all other necessary actions
consistent therewith to levy assessments sufficient to pay this contract loan in a timely
-manner and as required by the terms and conditions of this contract. Should the stockholders
fail to set any such assessments, the BORROWER shall make adequate assessments for the
purpose of repaying its obligations under this contract pursuant to § 7-42-104(2), C.R.S.
(1986). In addition, in the event the assessments levied by the BORROWER become insufficient
to assure repayment to the STATE as required by the terms and conditions of this contract,
then the BORROWER shall immediately take all necessary action consistent with its statutory
authority, its articles of incorporation, by-laws and resolutions, 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 reserve, . The BORROWER shall, pursuant
to its statutory authority, articles of incorporation, by-laws, r olu ;ons, Levy assessments
from time to time as necessary to provide sufficient f `ds # ecu a operation and
maintenance,emergency repair services,obsolescence reserves a bffirves. BORROWER
shall deposit an amount equal to one-tenth of an anhp nt into its reserve debt service
fund on an annual basis for the first ten years of ttjs 11 . ffils s ,.
16. Progress reports. The BORROWER shall, with the assistance of th - prepare a
periodic progress report which contains a statement of the PROJECT costs expended for that period
and shall forward said statement to the STATE.
17. Periodic inspections. Throughout the term of this contract, the BORROWER shall permit a
designated representative of the STATE to make periodic inspections of the PROJECT. Such inspections
are solely for the purpose of verifying compliance with the terms and conditions of this contract.
Furthermore, such inspections shall cover the condition of the PROJECT, operating records,
maintenance records, and financial records, and shall not be construed nor interpreted as an approval
of the actual design and/or construction of any element of the PROJECT facilities.
18. Adhere to applicable laws. The BORROWER shall strictly adhere to all applicable federal, state,
and local laws and regulations that are in effect or may hereafter be established throughout the term
of this contract.
19. No discrimination of services. The services of said PROJECT shall be made available within
its capacity and in accordance with all pertinent statutes, rules and regulations, and operational
guidelines to all persons in the BORROWER'S service area without discrimination as to race, color,
Beaver Park Water, Inc. Page 7 of 12 Loan Contract