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<br />l~ <br />'1 <br /> <br />d. Installment payments shall be made payable to <br />the Colorado Water Conservation Board at the address described in <br />- paragraph J herein. <br /> <br />e. The Borrower shall have the right to prepay all <br />or any part of the principal at any time without penalty. In the <br />event of any prepayment, this Contract shall not be treated as in <br />default with respect to payment so long as the unpaid balance of <br />principal and interest is less than it would have been had the <br />periodic payments been made as stated above. <br /> <br />7. As security for the loan to be made to it by the <br />State, the Borrower agrees to execute instruments creating a <br />security interest on behalf of the State on or before the effective <br />date of this contract that shall convey to the State, in the event <br />of default by the Borrower, an undivided one hundred percent (100%) <br />security interest, including but not limited to after acquired <br />interests, in the following: <br /> <br />a. specific revenues to be pledged herein, <br />including but not limited to all after acquired revenues, and <br /> <br />b. the Borrower's interest in the Allotment <br />Contract to be attached hereto as Appendix G and incorporated <br />herein by this reference. <br /> <br />Copies of such security interest (Uniform Commercial <br />Code-Security Agreement, and Uniform Commercial Code-Financing <br />Statement) are attached hereto as Appendices H and I, respectively, <br />and incorporated herein as if set out in full by this reference. <br /> <br />8. The Borrower agrees that the specific revenues to be <br />pledged to repay the State under this Contract shall be water user <br />charges and fees, the establishment of which have been authorized <br />by resolution of the Borrower. The Borrower hereby pledges <br />sufficient annual revenues to pay the annual installment amount <br />pursuant to paragraph B. 6 of this Proj ect Contract, and hereby <br />agrees to establish a separate account into which all such moneys <br />shall be deposited. <br /> <br />The Borrower hereby states and affirms that the revenues <br />from water user charges and fees which it will establish for use of <br />the water made available as a result of its participation in the <br />Project shall provide for the generation of sufficient revenues <br />for: <br /> <br />a. payment for the management, operation and <br />maintenance obligation of the Borrower in the Project as are more <br />fully set forth in the Allotment Contract; and <br /> <br />b. repayment of the loans covered by this <br /> <br />Contract. <br /> <br />9. During the term of this Contract, in the event that <br />water user charges and fees are or become insufficient to assure <br /> <br />Page 7 of 13 pages <br />