C150060A Contract - Laserfiche WebLink

Home Browse Search

(,) assessments received each year as authorized by the Borrower's resolution and (2) all of the Borrower's rights to receive said general revenues, hereinafter collectively referred to as the "Pledged Property," a, Segregation of Pledged Revenues, The BORROWER hereby agrees to set aside and keep the pledged revenues in an account separate from other BORROWER revenues, and warrants that it shall not use the pledged revenues for any other purpose, b. Establish Security Interest. The BORROWER agrees that, to provide a security interest to the CWCB in the Pledged Property so that the CWCB shall have priority over all other competing claims lor said property, it shall execute a Security Agreement, attached hereto as Appendix 4, and incorporated herein. The CWCB shall perfect its security interest in the BORROWER'S right to receive said revenues by filing a UCC-1 Form with the Colorado Secretary of State, c, Assessments For Repayment Of The Loan, Pursuant to its statutory authority, and as authorized by its resolution, the BORROWER shall take all necessary actions consistent therewith to levy assessments sufficient to pay this loan as required by the terms of this contract and the Promissory Note. In the event the assessments levied by the BORROWER become insufficient to assure such repayment to the CWCB, the BORROWER shall immediately take all necessary action consistent with its statutory ~ authority and resolution, including, but not limited to, levying additional assessments to raise sufficient revenue to assure repayment of this loan, d. Assessments For Operations, Maintenance And Reserves, Pursuant to its statutory authority and resolution, the BORROWER shall levy assessments in sufficient amounts to provide funds for adequate operation and maintenance, emergency repair services, and obsolescence and debt service reserves. e, Debt Service Reserve Account. To establish and maintain the debt service reserve account, the BORROWER shall deposit an amount equal to one-tenth of an annual payment into its debt service reserve fund on the due date of its first annual loan payment and annually thereafter lor the first ten years of this loan, In the event that the BORROWER applies funds from this account to repayment of the loan, the BORROWER shall replenish the account within ninety (90) days of withdrawal of the funds, j, Additional Debts or Bonds, The BORROWER 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 only with the prior written approval of the STATE, provided that: i. The BORROWER is currently and at the time of the issuance of the parity debt in substantial compliance with all of the obligations of this contract, 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 account; 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, excluding tap and/or connection fees, lor 12 consecutive months out of the 18 months immediately preceding the date of. Julesburg Irrigation District Page 3 of 12 Loan Contract