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<br />/ <br /> <br />, <br /> <br />designee, in the farm attached hereto as Appendix C. The REVISION lETTER shall not be valid until <br />approved by the State Controller or such assistant as he may designate. Upon proper execution and <br />approval, the REVISION lETTER shall become an amendment to this contract and, except far the Special <br />Provisions of the contract, the REVISION LETTER shall supersede the contract in the event of a conflict <br />between the two. The parties understand and agree that the REVISION LETTER may be used only to <br />decrease the final loan amount or to extend the time far completion of the PROJECT. <br /> <br />8. Warranties. <br /> <br />a. The BORROWER warrants that by acceptance of the loan money pursuant to the terms of this <br />contract and by the BORROWER'S representations herein, the BORROWER shall be estopped from <br />asserting for any reason that it is not authorized or obligated to repay the loan money to the <br />STATE as required by this contract. <br /> <br />b. The BORROWER warrants that it has full power and authority to enter into this contract. The <br />execution and delivery of this contract and the performance and observation of its terms, <br />conditions and obligations have been duly authorized by all necessary actions of the <br />BORROWER. <br /> <br />c. The BORROWER warrants that it has not employed or retained any company or person, other <br />than a bona fide employee working solely for the BORROWER, to solicit or secure this contract <br />and has not paid or agreed to pay any person, company, corporation, individual, or firm, other <br />than a bona fide employee, any fee, commission, percentage, gift, or other consideration <br />contingent upon or resulting from the award or the making of this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this contract <br />is not encumbered by any 'Other liens or deeds of trust to any party other than the STATE or in <br />any other manner. <br /> <br />9. Collateral. In addition to the revenues pledged as repayment, part of the collateral provided for <br />this loan shall be an undivided 100% interest in the water rights to be acquired with these loan <br />funds, hereinafter referred to as COLLATERAL. <br /> <br />a. As title to each component of the PROJECT is acquired, the BORROWER shall provide a copy of <br />the recorded deed of trust and an original executed security agreement. The deed of trust and <br />security agreement attached as Appendix 0 are the forms that shall be used to secure the <br />COLLATERAL. The BORROWER acknowledges that the STATE will file a Notice of Claim of Lien on <br />said water units with the Northem Colorado Water Conservancy District, and the STATE shall <br />file a UCC-1 Form with the Colorado Secretary of State to perfect its security interest. <br /> <br />b. The BORROWER, STATE and Jacobucci Water Brokers will enter into an escrow agreement <br />establishing the account where funds for BORROWER'S purchase of water units will be placed <br />until actual closing occurs. Said escroW agreement shall be fully executed prior to <br />disbursement of any loan funds and shall prOvide for retum of all loan funds to CWCB in the <br />event the BORROWER does not close on the pt.lrchase of the water units. <br /> <br />10. Collateral during repayment. The BORROWER shall not sell, convey, assign, grant, transfer, <br />mortgage, pledge, encumber, or otherwise dispose of any security far this loan, including the <br />revenues pledged to repay the loan herein, except far repayment of the Rural Development loans <br />as described in the Pledge of Revenues Provision, sa long as any of the principal and any accrued <br /> <br />Aristocrat Ranchette Water Project, Inc. <br /> <br />Page 4 of 11 <br /> <br />Loan Contract <br />