Laserfiche WebLink
c. Duration. The repayment period of this loan shall be one (1) year. <br />d. Prepayment conditions. The Borrower may prepay all or any of the loan at any time, without <br />penalty. These payments will be applied first to any accrued interest and then to reduce the <br />principal amount. <br />e. In the event the Borrower does not close on the purchase of the X-Y Ranch, the X-Y 2.5 cfs <br />water rights and/or the Manvel water rights, then the entire principal amount borrowed under <br />this contract for the particular purchase not closed on, shall be payable from the escrow <br />account directly to the State, as provided in the escrow agreement. The interest on the loan, <br />at three and one half percent (3.5%) shall be paid directly by Borrower to the State and shall <br />be due within one month of the determination that closing will not take place or November 15, <br />1996, whichever occurs earlier. <br />If the Borrower does close on the purchase of the X-Y Ranch, the X-Y 2.5 cfs water rights, <br />and/or the Manvel water rights, then the entire principal amount actually borrowed under this <br />contract for the particular purchase closed on shall be paid directly by Borrower to the State <br />at closing. <br />g. Borrower shall obtain written approval from the State prior to the release of funds from the <br />escrow accounts. The State agrees to provide such written approval or to notify Borrower <br />that such approval will not be granted within 15 calendar days of notification of closing. <br />h. To comply with § 37-60-130(3)19) and (h), the Borrower agrees to obtain commitments from <br />its members (11 to comply with any rules or changes to rules as promulgated by the State <br />Engineer concerning the measurement of groundwater withdrawals and the use of such <br />groundwater in the Arkansas River Basin; and 12) that any member who fails to make <br />payments in accordance with this loan shall cease pumping water. As a condition of the <br />State's approval of release of funds from the escrow accounts, the Borrower shall submit an <br />affidavit to the State attesting that it has obtained such commitments from its members. <br />i. The Borrower shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or <br />otherwise dispose of the assessment revenues pledged to repay the interest on the loan <br />herein, so long as any of the principal and any accrued interest required by the Promissory <br />Note of the contract remain unpaid, without the prior written concurrence of the State. <br />5. The Borrower shall, pursuant to its Articles of Incorporation and to its By-Laws, take all <br />necessary actions consistent therewith to levy assessments to raise sufficient funds to pay for this <br />contract loan debt in a timely manner and as required by the terms and conditions herein to assure <br />repayment of the project loan to the State. In the event that the assessmentls) levied by the Borrower, <br />or the revenues resulting therefrom, are or become insufficient to assure repayment to the State as <br />required by the terms and conditions herein, then the Borrower, upon written notice thereof from the <br />State, shall immediately take all necessary action consistent with its By-Laws, including but not limited <br />to additional assessments, to raise sufficient revenue to assure repayment of the loan to the State. <br />6. Security Interest Provisions: <br />a. The parties agree that the collateral for the principal of this loan shall be the principal amount <br />of up to 5750,000, which shall be placed in escrow accounts and, under the terms of escrow <br />agreements, shall be paid directly to the State if the Borrower fails to close on the purchase <br />of the property. <br />Page 4 of 8 LOWER ARKANSAS WATER MANAGEMENT ASSOC. LOAN CONTRACT <br />