C153514 Contract

• Contract/PO #: C153514
• Contractor Name: Farmers Water Development Company
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: SB 87-15
• Loan Projects - Doc Type: Contract Documents

J. Upon completion of repayment to the State in the amount of
One Million'Six Hundred Thirty-One Thousand Eight Hundred Forty
Dollars ($1.631.840). as set forth in paragraph B.l1. above of
this contract. the State agrees to convey to the Contractor all
of the State's right. title. and interest in and to the project
and any other property described in paragraph B.13. above by
deed or other proper conveyance.

K. The Colorado Water Conservation Board. its agents and
employees. is hereby designated as the agent of the State for
the purpose of this contract.

L. The Contracto~ agrees and understands that sections
37-60-119 through 37-60-122. CftS. as amended. require that the
loan of money by the State to the Contractor for this water
project be conditioned upon the repayment of the loan to the
State. The Contr~ctor hereby agrees to take any and all
actions necessary to guarantee such repayment as provided
herein including. without being limited to. the actions
specified in this contract.

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M. The Contractot agrees that the specific revenues to be
pledged to repay ~he State shall include. without being limited
to. an assessment levied for'that purpose as authorized by
resolution of the Contractor. The Contractor hereby pledges
such assessment revenues to repay the State loan. warrants that
these revenues will not be used for any other purpose. and
agrees to provide the State a perfected security interest in
the form provided by the State irrevocably pledging such
revenues on the d8te of execution of this contract.

N. The Contractor warrants that it has duly passed a
resolution by its Board of Directors. as provided in its
By-Laws. authorizing: the Contractor to enter into this
contract with the State to borrow the principal sum of Seven
Hundred Thousand vollars ($700.000); the making and levying of
an assessment(s) sufficient to payoff this contract loan
pursuant to its terms and to discharge this lawful
indebtedness; the setting aside of this asse6sment revenue in a
special fund separate and apart from other Contractor revenues
to assure repayment of this revenue to the State; and the
signing of a security interest in such asseS6ment revenues in
favor of the State to secure the repayment. The resolution of
the Contractor and the security interest of the Contractor are
conditions precedent to State performance and shall be attached
hereto and included herein by this reference,

O. The Contractor warrants that in the event of a default by
the Contractor in the repayment to the Statel and upon written
notice thereof from the State. the Contractor shall. pursuant
to its By-Laws. immediately take all necessary actions to levy
an additional assessment and to pledge additional revenues in
sufficient amount and in a timely manner to cure the default
and to repay the state as required by the contract, SUch
additional revenueS shall be deemed covered bY the existing
security interest.

P. The Contractor warrants that the security interest executed
by the Contractor in favor of the State to secure repayment of
this loan is a valid security interest which shall be binding
against the Contractor and that the Contractor has perfected
this security interest such that the State has priority over
all other competing claims for such secured revenues.

Q. The Contractor warrants that by acceptance of the loan
money pursuant to the terms of this contract and by the
Contractor's representation herein. the Contractor shall be
estopped from asse~ting for any reason that it is not
authorized or obliqated to repay the loan money to the State as
required by this contract.

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