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\ \ I ! r.. The Contractor agrees and undecstandH that sections 37-60~119 through 37-60-122. CRS. dli iiUlonded. ceqtJjr<~ \.tldt the loan of money by the State to the Contractor for this water project be conditioned upon 1,llB repayment of the loan to the State.' The Contractor hereby agrees to take any and all acti(ln~ necessary to guarantee such repayment as provided herein including, without being 1 irolted to. the actions specified in thiH contract. M, The Contractor agrees that the specific revenues to be pledged to repay the State shall include. without being limited to. an assessment levied for that plJrpose as authorized by R(~Holution of l:he Contractor. The Contractor hl!reby pledges SllCh assessment revenues to repdY l:he State lOdrl. Wdrrdnts that these revenues will not be used for any other purpose. and agrees to provide the State a perfo(:tnd :lectJ~ity lnl.erH~t in the form provided by the State irrevocably pledging such revenueR on the date of execution of this contract. N. The Contractor warrants that it has duly passed a Resolution by its stockholders. as provided in its By-Laws. authorizing: the Contra(:I.clr I,() .(!flter into l.llis (:()ntract with the State to borrow the principal sum of One Hundred Sixty-Nine Thousand Six Hundred nollars ($169.600); the making and levying of an assessment(s) sUffi(:ient to pay off this contra(:t l()an pursuant to its terms and to discharge this lawful indebtedness; the setting aside of this annessment revenue in a special fund separate and apart from other Contractor reverlues to assure repayment of this revenue to the State; and the signing of a security interest in such assessment revenues in favor of the State to secure the repayment. The Resolution of the Contractor and the security interest of the Contractor are conditions precedent to State performance and shall be attached hereto and included herein by this reference. O. The COfll,ra(:tor warrants l.tlat in the evertt of a default by the Contractor in the repayment to the State. and upon written notice thoreof from the State. the Contra(:tor Hhall, pursuant to its By-Laws. immediately take all necessary actions to levy an additional assessment and to pledge additional revenues in sufficient amount and in a timely manner to cure the default and to repay the State as required by the contract. Such additional revenues shall be deemed covered by the p.xisting security interest. P. The Contractor warrants that the security interest executed by the Contractor in favor of t~e State to secure repayment of this 108n is a valid security interest which shall be binding against the Contractor and that the Contractor has perfected this necurity interest such that the State has priority over all other competing claims for such secured revenues. Q. The Contractor warrants that by acceptance of the loan money pursuant to the terms of this contract and by the Contractorl~ representation herein. the Contractor shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loarl money to the State as required by this contract. R, All notices. correspondence. or other documents required by this contract shall be delivered or mailed to the following addresses: (a) For the State: nir.ector Colorado Water Conservation Roard 721 State Centennial Building 1313 Sherman Street Denver. CO 80203 Attn: Nick Ioannides (b) For the Contractor: Fruitland Trriy~tion Company Route 1. Box 34 Crawford, CO R14l5 Attn: Norbert Jackson, President '. Page ~ of 10 pages