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<br />) <br /> <br />) <br /> <br />and Appendix G respectively, incorporated herein, shall be an undivided one hundred percent <br />(100%) interest in 100 sha~es of capital stock of the Highland Irrigation Company which are <br />. evidenced by Stock Certificate No. 328 which represents out of a total of 2,204.6 shares, <br />hereinafter referred to as COLLATERAL <br /> <br />10. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, transfer, <br />mortgage, pledge, encumber, or otherwise dispose of any collateral for this loan, or any <br />portion thereof or the assessment revenues pledged to repay the loan herein, so long as any <br />of the principal and any accrued interest required by the Promissory Note Provisions .of the <br />contract remain unpaid without the prior written concurrence of the STATE. <br /> <br />11. Remedies For Default. Upon default in the payments herein set forth to be made by the <br />BORROWER, or default in the performance of any cove mint or agreement contained tierein, the <br />STATE, at its option, may: <br /> <br />a. declare the entire principal amount and accrued interest then outstanding immediately due <br />and payable; and/or <br /> <br />b. act upon the Promissory Note, Security Agreements, Assignment Of Deposit Account As <br />Security, Deed of Trust, and Stock Assignment; and/or <br /> <br />c. take any other appropriate action. <br /> <br />All remedies described herein may be simultaneously or selectively and successively <br />enforced. The provisions of this contract may be enforced by the STATE at its option without <br />regard to prior waivers of previous defaults by the BORROWER, through judicial proceedings to <br />require specific performance of this contract, or by such other proceedings in law or equity as <br />may be deemed necessary by the STATE to ensure compliance with provisions of this contract <br />and the laws and regulations under which this contract is executed. The STATE'S exercise of <br />any or all of the remedies described herein shall not relieve the BORROWER of any of its duties <br />and obligations under this contract. <br /> <br />12.ln Event Of A Conflict. In the event of conflict between the terms of this contract and <br />conditions as set forth in any of the appendices, the provisions of this contract shall control. <br /> <br />13. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes <br />of repayment of this loan revenues from assessments levied for that purpose as authorized by <br />the BORROWER'S resolution in the amount of the annual loan payments due under this contract <br />and all of the BORROWER'S rights to receive said assessment revenues from its members <br />(hereinafter collectively referred to as the .pledged property"). Furthermore, BORROWER <br />agrees that <br /> <br />a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees <br />that the pledged revenues shall be set aside and kept in an account, set up to pay the <br />pledged revenues or any other revenue due to the STATE, separate from other BORROWER <br />revenues, and warrants that these revenues shall not be used for any other purpose. <br /> <br />b. Establish Security Interest. The BORROWER agrees that, in order to provide a security <br />interest for the STATE in the pledged property so that the STATE shall have priority over all <br />other competing claims for said property, it shall execute a Security Agreement, attached <br />hereto as Appendix H incorporated herein, and an Assignment. of Deposit Account as <br />Security, attached as Appendix I and incorporated herein, prior to the disbursement of <br />any loan funds. The BORROWER acknowledges that the STATE shall perfect its security <br />interest in the BORROWER'S right to receive assessment revenues by filing a UCC-1 Form <br />with the Colorado Secretary of State. <br /> <br />Feasibility Report Loan Contract <br /> <br />Page 4 of 9 <br />