C150004 Contract - Laserfiche WebLink

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13. Collateral during repayment. The CITY and the BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the COLLATERAL for this loan or the water system revenues pledged herein to repay the loan, so long as any of the principal, accrued interest, and late charges, if any, on this loan remain unpaid, without the prior written concurrence of the StATE. In the event of any such sale, transfer or encumbrance without the STATE'S written concurrence, the STATE may at any time thereafter declare all outstanding principal and interest on this loan immediately due and payable, 14, Remedies for default. Upon default in the payments herein set forth to be made by the BORROWER, or default in the performance by the CITY or the BORROWER 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. exercise its rights under the Security Agreements and/or Promissory Note; c, enforce its security interest in the Allotment Contract Rights by exercising or temporarily assigning the Allotment Contract Rights. i. If the STATE enforces its security interest in the Allotment Contract Rights by exercising or temporarily assigning the Allotment Contract Rights, the STATE (or the party to whom the STATE lawfully leases or temporarily assigns the CITY'S andlor BORROWER'S interest therein) shall fully perform the obligations and receive the benefits thereunder, subject to the terms of the Allotment Contract, The STATE agrees to exercise the CITY'S and/or BORROWER'S Allotment Contract Rights in a manner that will ensure delivery of sufficient water to meet the actual needs of the CITY'S customers. The STATE agrees to apply revenues received as a result of its exercise or temporary assignment of such Allotment Contract Rights to the payment of principal, interest, and late charges, if any, due hereunder with any excess payable to the BORROWER. The STATE agrees not to permanently transfer or assign all or any part of the CITY'S and/or BORROWER'S Allotment Contract Rights. Ii. The STATE further agrees to cease exercising andlor to return the CITY'S andlor BORROWER'S Allotment Contract Rights to the CITY and/or the BORROWER as soon as possible after the default has been cured and the CITY and/or the BORAOWER reasonably demonstrates that it is able to comply with all the terms of this contract and the Allotment Contracts. iii. The STATE will not enforce its security interest in the Allotment Contract Rights if default in payment is caused by an order of the Colorado State Engineer prohibiting storage and release of water from Carter Lake ReseNoir. a. take any other appropriate action. All remedies described herein may be simultaneously 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 CITY andlor the BORROWER, 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 City of Fort Morgan, Colorado & City of Fort Morgan, Coiorado, Water Works and Dislobulion Enlerprise Page 8 of 13