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<br />issuance of such parity debt, the BORROWER'S revenues are sufficient to pay at
<br />least the annual debt service on all outstanding indebtedness having a lien on
<br />the pledged revenues, including this loan, the annual debt service on the
<br />proposed indebtedness to be issued, and all required deposits to any reserve
<br />funds required by this contract or by the lender(s) of any indebtedness having a
<br />lien on the pledged revenues. The analysis of revenues shall be based on the
<br />BORROWER'S current rate structure,
<br />
<br />The BORROWER acknowledges and understands that any request for approval of the
<br />issuance of parity debt must be reviewed and approved by the CWCB Director prior to the
<br />issuance of any parity debt.
<br />
<br />8, Collateral. The collateral for this loan is described in Section 3 (Collateral) of the Project
<br />Summary, The BORROWER shall not sell, convey, assign, grant, transfer, mortgage,
<br />pledge, encumber, or otherwise dispose of the collateral for this loan, including the
<br />Pledged Property, so long as any of the principal, accrued interest, and late charges, if
<br />any, on this loan remain unpaid, without the prior written concurrence of the CWCB, In
<br />the event of any such sale, transfer or encumbrance without the CWCB's written
<br />concurrence, the eWCB may at any time thereafter declare all outstanding principal,
<br />interest, and late charges, if any, on this loan immediately due and payable.
<br />
<br />9, Release After Loan Is Repaid, Upon complete repayment to the eWCB of the entire
<br />principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br />Note, the eWCB agrees to release and terminate any and all of the CWCB's right, tille,
<br />and interest in and to the collateral and the property pledged to repay this loan.
<br />
<br />10. Warranties.
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<br />a. The BORROWER warrants that, by accepting the loan money under this contract and
<br />by its representations herein, the BORROWER shall be estopped from asserting for any
<br />reason that it is not authorized or obligated to repay the loan to the eWCB as
<br />required by this contract.
<br />
<br />b, The BORROWER warrants that it has not employed or retained any company or
<br />person, other than a bona fide employee working solely for the BORROWER, to solicit
<br />or secure this contract and has not paid or agreed to pay any person, company,
<br />corporation, individual, or firm, other than a bona fide employee, any fee,
<br />commission, percentage, gift, or other consideration contingent upon or resulting
<br />from the award or the making of this contract.
<br />
<br />c, The BORROWER warrants that the collateral for this loan is not encumbered by any
<br />other deeds of trust or liens of any party other than the eWeB or in any other
<br />manner.
<br />
<br />11. Change of Use of Water Shares During Term of Contract. If the interest rate for
<br />this loan is based on the CWCB's agricultural or blended agricultural and municipal'
<br />rates, the BORROWER agrees to notify the STATE of any change of the use of the water
<br />rights represented by its shares from irrigation to municipal or commercial use, The
<br />interest' rate shall be revised when the blend of the agricultural rate, and the
<br />municipal/commercial rate increases the original interest rate by 0,5% or more. The
<br />parties shall amend this contract, including a revised promissory note, to effect said
<br />change in interest rate in accordance with Paragraph AA herein,
<br />
<br />Julesburg Irrigation District
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<br />Loan Contract
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