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) 10. 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 paya~I~; b. act upon the promissory note, security agreements, deeds of trust, stock assignments, and assignment of deposit account as security;. . c. take any other appropriate action. All remedies described herein may be simult~neously or selectively and successively enforced. The provisions of this contract may be enforced by the STATE at its option without regard to prior waivers of previous defaults by the BORROWgR, through judicial proceedings to require specific performance of this contract, or by such other proceedings in law or equity as may be deemed necessary by the STATE to ensure compliance with provisions of this contract and the laws and regulations under which this contract is executed. The STATE'S exercise of any or all of the remedies described herein shall not relieve the BORROWER of any of its duties and obligations under this contract. 11.ln Event Of A Conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 12. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes of . repayment of this loan revenues from assessments levied for that purpose as authorized by the BORROWER'S resOlution in the amount of the al1nualloan payments due under this contract and all of the BORROWER'S rights to receive said assessment revenues from its members (hereinafter collectively referred to as the "pledged properly"). Furthermore, BORROWER agrees that"'" . a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agreesthatthe pledged 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. The BORROwE::R 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 9 incorporated herein. The Borrower agrees to execute an Assignment of Deposit Account as Security, attached as Appendix 10 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 authorited 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 i11corporation;,by.laws, and resolutions, the BORROWER shall levy assessments from time to time as necessary to provide sufficient funds for adequate operation Lower Arkansas Water Management Association Page 5 of 10 Loan Contract