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L. The Contractor agrees that the specific revenues to be pledged to repay the 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 date of execution of this contract. M. The Contractor warrants that it has duly passed, or will pass, a Resolution (Exhibit A) by its Board of Directors, as provided in its Board of Directors, as provided in its By -Laws, authorizing: (a) the Contractor to enter into this contract with the State to borrow the principal sum of One Million Eight Hundred Thousand Dollars ($1,800,000); (b) to make and levy assessment(s) sufficient to pay off this contract loan pursuant to its terms and to discharge this lawful indebtedness; (c) to set aside this assessment revenue in a special fund separate and apart from other Contractor revenues to assure repayment of this revenue to the State; and (d) 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 E and F, respectively. The Resolution of the Contractor and the security interest of the Contractor are conditions precedent to State performance. N. The Contractor warrants that in the event of a default by the Contractor in the repayment to the State, 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 a sufficient amount and in a timely manner to cure the default and to repay the State As r=quired by the contract. Such additional revenues shall be deemed covered by the existing security interest. O. 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. P. 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 Page 10 of 13 Pages