C153705 Contract - Laserfiche WebLink

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..-:--- I the PROJECT rehabilitation has been substantially completed. The actual interest which will accumulate during construction is unknown and cannot be calculated until the conclusion of construction. f. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time, without penalty. These payments will be applied first to any accrued interest and then to reduce the principal amount. 9. Deed of trust. The security provided for this loan and as evidenced by the executed deed of trust as shown in Appendix B shall be an undivided one hundred percent (100%) interest in the following, hereinafter referred to as SECURITY: All of Beaver Reservoir, located in Gunnison County on the East Fork of Minnesota Creek approximately nine miles southeast of Paonia, State of Colorado, all appurtenant structures thereto, and all water and water rights appurtenant to or used in connection with Beaver Reservoir, including, but not limited to, 551.5 acre-feet with an appropriation date of October 6, 1956, decreed by the Delta County District Court in Civil Action 4808 on January 31, 1964, and 1068.6 acre-feet with an appropriation date of October 6, 1956, decreed by the Delta County District Court in Civil Action 4808 on January 31, 1964, which BORROWER warrants that this SECURITY is not encumbered in any other way. 10. Remedies for default, Upon default in the payments 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. for the account of the SECURITY, incur and pay reasonable expenses for repair, maintenance, and operation of the SECURITY herein described and such expenses as may be necessary to cure the cause of default; c. take possession of 'the SECURITY, repair, maintain, and operate or lease it; d. act upon the deed of trust, security interest, and promissory note; e. 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. 11. No sale or conveyance of any collateral until the loan is repaid. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PROJECT or any portion thereof or the assessment revenues pledged to repay the loan herein, so long as any of the principal and any accrued . interest required by the Promissory Note Provisions of the contract remain unpaid without the prior written concurrence of the STATE. 12. This contract controls if there is a conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 13. Pledge of revenues. The BORROWER agrees that the specific revenues to be pledged to repay the STATE shall include, but not be limited to, an assessment levied for that purpose as authorized by resolution of the BORROWER. Furthermore, BORROWER agrees that a. Revenues for this loan are to be kept separate. The BORROWER hereby pledges such revenues to repay the STATE loan, agrees that these revenues will be set aside and kept separate from other BEAVER RESERVOIR COMPANY Page 5 of 11 LOAN CONTRACT