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contract and the limitations of the statutory authority under which it is made. J. Upon completion of repayment to the State in the amount of One Million Nine Hundred Nine Thousand Eighty-Two Dollars and Forty Cents ($1.909.082.40). as set forth in paragraph B,8. above of this contract. the State agrees to convey to the Contractor all of the State's ri9ht. title. and interest in and to the project and any other property described in paragraph' B.9. 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 Contractor agrees and understands that Sections 37-60-119 through 37-60-122. CRS. 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 Contractor 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. M. The Contractor agrees that the specific revenues to be pledged to repay the State shall include. without being limited to. a water allotment contract assessment levied for that purpose as authorized by Resolution of its Board of Directors (Exhibit C). The Contractor hereby pledges such assessment revenues to repay the State loan. warrants that these revenues will not be used tor 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 date of execution of this contract. N. The Contractor warrants that it has duly passed. or will pass. a Resolution (EXhibit C) by its Board of Directors. as provided in its Rules and Regulations. authorizing: the Contractor to enter into this contract with the State to borrow the principal sum of One Million One Hundred Three Thousand Two Hundred Dollars ($1.103.200); to make and levy water allotment contract assessment(s) sufficient to payoff this contract loan pursuant to its terms and to discharge this lawful indebtedness: to set aside this assessment revenue in a special and separate account. apart from other Contractor revenues to assure repayment of this revenue to the State; and to sign a security interest in such assessment revenues in favor of the State to secure the repayment, Copies of such security interest (Uniform Commercial Code--Security Agreement and Uniform Commercial Code--Financing Statement) shall be attached hereto and incorporated herein as Exhibits H and I. respectively. The Resolution of the Contractor and the security interest of the Contractor are conditions precedent to State performance. o. The Contractor warrants that in the event of a default by the Contractor in the repayment to the State. and upon written notice thereof trom the State. the Contractor shall. pursuant to its Rules and Regulations and Sections 37-45-121 through 37-45-126. CRS (1973 and 1989 Supp.). immediately take all necessary actions to levy an additional assessment and to pledge additional revenues in a 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 Page ~ of 1 Pages