PROJC00053

• Contract/PO #: C153706
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

b. The Borrower agrees that the specific revenues to be pledged to repay the interest on the
State loan shall include, without being limited to, an assessment levied for that purpose as
authorized by Resolution or Order of the Borrower.
c. The Borrower hereby pledges such assessment revenues to repay the interest on the State
loan, agrees that these revenues will be set aside and kept separate from other Borrower
revenues, warrants that these revenues will not be used for any other purpose, and agrees to
provide the State a perfected security interest such that the State has priority over all other
competing claims for such secured revenues.
d. The Borrower agrees that, in order to provide a security interest to the State irrevocably
pledging such revenues on the date of execution of this contract, the Borrower shall provide
a Uniform Commercial Code Security Agreement and Financing Agreement, completely and
properly executed, which is attached as Appendix C and incorporated herein.
7. Remedies for default. Upon default in the payment herein set forth to be made by the
Borrower, or default in the performance of any covenant or agreement contained herein, the State, at its
option, may:
a. Declare the entire principal amount and accrued interest then outstanding immediately due and
payable;
b. Take any other appropriate legal action.
All remedies described herein may be simultaneously or selectively and successively enforced. The
provisions of this contract may be enforced by the State at its option without regard to prior waivers of
previous defaults by the Borrower, through judicial proceedings to require specific performance of this
contract, or by such other proceedings in law or equity as may be deemed necessary by the State to
ensure compliance with provisions of this contract and the laws and regulations under which this contract
is entered into.
8. Release after loan is repaid. Upon complete repayment to the State of the entire principal and
any accrued interest as specified in the Promissory (Vote Provisions of this contract, the State agrees to
execute a UCC-3 form to terminate all of the State's rights in and to the revenues pledged to repay this
loan.
9. Borrower Warranties:
a. The Borrower warrants that it has full power and authority to enter into this Contract. The
execution and delivery of this Contract and the performance and observation of its terms,
conditions and obligations have been duly authorized by all necessary actions of the Borrower.
b. The Borrower warrants that by accepting a loan pursuant to the terms of this Contract and
by the Borrower's representations herein, the Borrower shall be estopped from asserting for
any reason that it is not authorized or obligated to repay the loan pursuant to the terms of this
Contract to the State.
c. The Borrower warrants that it has not employed or retained any company or person to solicit
or secure this contract and that he has not paid or agreed to pay any person, company,
corporation, individual, or firm, other than a bona fide employee working solely for him, any
fee, commission, percentage, gift, or other consideration contingent upon or resulting from
the award or the making of this contract.
Page 5 of 8 LOWER ARKANSAS WATER MANAGEMENT ASSOC. LOAN CONTRACT