C-153757 PIF

• Contract/PO #: C-153757
• Contractor Name: Decker Lateral Company, The
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

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, and an Assignment of Deposit Account as
Security, attached as Appendix 6 and incorporated herein, prior to the disbursement of
any loan funds. 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 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 qr4, 9.mount equal to one-tenth of an annual
payment into its debt service reserve fund ono I •} i r first ten years of this
loan.
16. 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. act upon the Promissory Note, Security Agreement, and Assignment Of Deposit Account
As Security,
d. apply the funds contained in the CD ACCOUNT to the repayment of the loan;
e. take any other appropriate action.
All remedies described herein may be simultaneously or selectively and successively
The Decker Lateral Company Page 7 of 14 Loan Contract