C153739 Contract - Laserfiche WebLink

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revenues for repayment of its RURAL DEVELOPMENT loans, with which this loan shall have parity status, it shall execute a Security Agreement, attached as Appendix F and incorporated herein. Furthermore, the BORROWER acknowledges that the STATE shall perfect its security interest by filing a UCC-1 Form with the Colorado Secretary of State. d. Assessments for repayment of the loan. The BORROWER shall, pursuant to its statutory authority, articles of incorporation and bylaws, and as authorized by its resolution, establish and collect water charges from its members in an amount to pay this contract loan in a timely manner and as required by the terms and conditions of this contract, and, if said water charges are insufficient to pay the amount owing on this loan, to recommend to its members the amount of membership assessments necessary to make up such deficit. Should the members fail to approve such assessments, the BORROWER shall make adequate assessments for the purpose of repaying its obligations under this contract pursuant to Article VII, Section 2 of its bylaws. In addition, in the event the assessments levied by the BORROWER become insufficient to assure repayment to the STATE as required by the terms and conditions of this contract, then the BORROWER shall immediately take all necessary action consistent with its statutory authority, its articles of incorporation, bylaws and resolutions, including but not limited to, levying special assessments to raise sufficient revenue to assure repayment of the loan to the STATE. e. Assessments for operations, maintenance and reserves. The BORROWER shall, pursuant to its statutory authority, articles of incorporation, bylaws, and resolutions, levy assessments from time to time as necessary to provide sufficient funds for adequate operation and maintenance, emergency repair services, obsolescence reserves and debt reserves. BORROWER shall deposit an amount equal to one-tenth of an annual payment into its reserve debt service fund on an annual basis for the first ten years of this loan. f. Additional debts or bonds. The BORROwi:OR shall not issue any indebtedness payable from the pledged revenues and having a lien thereon which is superior to the lien of this loan. The BORROWER may issue parity debt, with the prior written approval of the STATE, if: i. The BORROWER is in substantial compliance with all of the obligations of this contract at the time of issuance of the parity debt, including, but not limited to, being current on the annual payments due under this contract and in the accumulation of all amounts then required to be accumulated in the BORROWER'S reserve debt service fund; and ii. The BORROWER provides to the STATE a Parity Certificate from an independent certified public accountant certifying that, based on an analysis of the BORROWER'S revenues for 12 consecutive months out of the 18 months immediately preceding the date of issuance of such parity debt, the BORROWER'S revenues are sufficient to pay the annual debt service on all outstanding indebtedness. including this loan, the annual debt service on the proposed indebtedness to be issued, and all deposits to any required reserve funds, including those required by this contract. If the BORROWER has adjusted its rates within said 12 month period, the analysis shall be conducted based on the adjusted revenue rate. The BORROWER acknowledges and understands that any request for approval of the issuance of parity debt must be reviewed and approved by the CWCB at a regularly scheduled Board meeting prior to the issuance of any parity debt. Aristocrat Ranchette Water Project. Inc. Page 6 of 11 loan Contract