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<br />,--." <br /> <br />loan funds, The BORROWER acknowledges that the STATE shall perfect its security interest in <br />the BORROWER'S right to receive assessment revenues by filing a UCC-1 Form with the <br />Colorado Secretary of State. <br /> <br />c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, articles of <br />incorporation and by-laws, and as authorized by its resolution, the BORROWER shall take all <br />necessary actions consistent therewith to levy assessments sufficient to pay this loan as <br />required by the terms of this contract and the promissory note. In the event the assessments <br />levied by the BORROWER become insufficient to assure such repayment to the STATE, the <br />BORROWER shall immediately take all necessary action consistent with its statutory authority, <br />its articles of incorporation, bylaws and resolution, including, but not limited to, levying <br />additional assessments to raise sufficient revenue to assure repayment of the loan to the <br />STATE. <br /> <br />d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory <br />authority, articles of incorporation, by-laws, and resolutions, the BORROWER shall levy <br />assessments from time to time as necessary to provide sufficient funds for adequate <br />operation and maintenance, emergency repair services, obsolescence reserves and debt <br />service reserves. BORROWER shall deposit an amount equal to one-tenth of an annual <br />payment into its debt service reserve fund on an annual basis for the first ten years of this <br />loan, <br /> <br />16. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify <br />the STATE of any change of the use of the water rights represented by its shares from irrigation <br />to municipal or commercial use, at which time the STATE shall adjust the interest rate on that <br />portion of the outstanding loan amount corresponding to the percentage of shares for which <br />the use has been changed to the CWCB's municipal or commercial rate in effect at the time of <br />the change of use of the water rights, The parties shall execute a contract amendment to <br />effect said change in interest rate, <br /> <br />17. Remedies For Default. Upon default in the payments herein set forth to be made by the <br />BORROWER, or default in the performance of any covenant or agreement contained herein, the <br />STATE, at its option, may: <br /> <br />a. declare the entire principal amount and accrued interest then outstanding immediately due <br />and payable; <br /> <br />b, incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT <br />facilities herein described and such expenses as may be necessary to cure the cause of <br />default, and add the amount of such expenditures to the principal of the loan amount; <br /> <br />c. take possession of the PROJECT facilities, repair, maintain, and operate or lease them; <br /> <br />d, exercise its rights under the Promissory Note, Security Agreement, Assignment Of Deposit <br />Account As Security, and Deed Of Trust, <br /> <br />e, take any other appropriate action. <br /> <br />All remedies described herein may be simultaneously or selectively and successively enforced. <br />The provisions of this contract may be enforced by the STATE at its option without regard to prior <br /> <br />DeWeese-Dye Ditch & Reservoir Company <br /> <br />Page 7 of 13 <br /> <br />Loan Contract <br />