CT2019-3463 Contract

• Contract/PO #: CT2019-3463
• Contractor Name: Left Hand Ditch Comapny
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

will not be completed. Any such loan funds so remitted to CWCB shall be applied to the principal
payment of amounts due on the Loan.
9. BORROWER'S AUTHORITY TO CONTRACT 1
The Borrower warrants that it has full power and authority to enter ito this Contract. The
execution and delivery of this Contract and the performance and ob ervation of its terms,
conditions and obligations have been duly authorized by all necessary actio s of the Borrower.The
Borrower's Authorizing Resolution(s) (attached as Appendix 4) and incorporated herein, include
the Resolutions of the Board of Directors and the Resolutions of the Shareholders
10.ATTORNEY'S OPINION LETTER
Prior to the final execution of this Contract the Borrower shall submit to the CWCB a letter from
its attorney stating that it is the attorney's opinion that:
A. The Contract has been duly executed by officers of the Borrower Nvho are duly elected or
appointed and are authorized to execute the Contract and to bind the Borrower; and
B. The resolutions of the Borrower authorizing the execution and delivery of the Contract were
duly adopted by the Borrower's board of directors (and shareholder)s; and
C. There are no provisions in the Borrower's articles of incorporation o bylaws or any state or
local law that prevent this Contract from binding the Borrower; and
D. The Contract will be valid and binding against the Borrower if fully executed.
11. PLEDGE OF REVENUES
The Borrower irrevocably(but not exclusively)pledges to the CWCB, for the purpose of repaying
the Total Loan Amount,the Pledged Revenues,in such amount as is necessary to make each annual
payment due under this Contract. Such pledge of the Pledged Revenues is on parity with the debt
identified in Section 5 of Appendix 1 (Schedule of Existing Debt)and any additional indebtedness
that may be secured by the Pledged Revenues in the future that is incurred in accordance with
Section 11.E., hereof, and together with the Existing Parity Debt, shall be the Borrower's "Parity
Indebtedness."
A. Segregation of Pledged Revenues. The Pledged Revenues shall be accounted for and
maintained in an account separate from other Borrower revenues at all times. The Pledged
Revenues shall be used first to pay debt service on the Total Loan Arnount and all other Parity
Indebtedness on an equal basis and thereafter may be used for any d all other expenses.
B. Establish Security Interest. The Borrower has duly executed a Security Agreement,
(attached as Appendix 5)and incorporated herein,to provide a security interest to the CWCB
in the Pledged Revenues. The lien of this Contract on the Pledged Revenues shall have
priority over all other competing claims with respect to the Pledged Revenues,except for the
parity lien on the Pledged Revenues of any Parity Indebtedness.
C. Assessment Covenant. Pursuant to its statutory authority and as permitted by law, the
Borrower shall take all necessary actions consistent therewith during the term of this Contract
to establish, levy and collect rates, charges and fees as described in Appendix 5, in amounts
sufficient to pay this loan as required by the terms of this Contractd the Promissory Note,
to cover all expenditures for operation and maintenance and emerg�ncy repair services, and
to maintain adequate debt service reserves.
Contract Number:CT2019-3463 Page 8 of 20 Version 0119