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<br />adopt resolutions, irrepealable during the life of this loan, authorizing the President and <br />Secretary, on behalf of the BORROWER, to do the following: <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note, and to <br />pay the indebtedness, and <br /> <br />b. To levy assessments in an amount sufficient to pay the annual amounts due under this <br />contract, and to pledge said assessment revenues and the BORROWER'S right to receive <br />said revenues from its members for repayment of this loan, in accordance with the <br />Pledge of Property Provisions herein, and <br /> <br />c. To place the revenues from assessments pledged to make annual loan payments in a <br />special account separate and apart from other BORROWER revenues, in accordance with <br />the Pledge of Property Provisions of this contract, and <br /> <br />d. To make annual payments in accordance with the promissory note, and <br /> <br />e. To make annual deposits to a debt service reserve fund in accordarice with the Pledge <br />of Property Provisions of this contract, to execute and deliver a deed(s) of trust, security <br />agreement(s) and assignment(s) to convey a security interest to the STATE in certain <br />water rights, in accordance with the Collateral provision of this contract, and to execute <br />a Security Agreement and an Assignment of Deposit Account as Security to secure the <br />revenues pledged herein in accordance with the Pledge of Property Provisions of this <br />contract. <br /> <br />Said resolutions are attached hereto as Appendix A and incorporated herein. <br /> <br />5. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the <br />BORROWER shall submit tathe STATE a letter from its attorney stating that it is the attorney's <br />opinion that the person signing for the BORROWER was duly elected or appointed and has <br />authority to sign such documents on behalf of the BORROWER and to bind the BORROWER; <br />that the BORROWER'S members and board of directors have validly adopted resolutions <br />approving this contract; that there are no provisions in the BORROWER'S articles of <br />incorporation or bylaws or any state or local law that prevent this contract from binding the <br />BORROWER; and that the contract will be valid and binding against the BORROWER if entered <br />into by the STATE. <br /> <br />6. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment <br />and evidencing this debt in the amount of up to $305,250 at an interest rate of 4.75% per <br />annum for a term of 30 years is attached as Appendix B and incorporated herein. <br /> <br />a. Interest During Project Completion. As the loan funds are disbursed by the STATE to <br />the BORROWER during PROJECT completion, interest shall accrue at the rate of 4.75% <br />per annum. The amount of the interest accrued during PROJECT completion shall be <br />calculated by the STATE and the BORROWER shall repay that amount to the STATE either <br />within ten (10) days after the date the STATE determines that the PROJECT has been <br />substantially completed, or, at the STATE'S discretion, the amount shall be deducted <br />from the final disbursement of loan funds that the STATE makes to the BORROWER. <br /> <br />b. Final loan amount. In the event that the final loan amount is at least 90% of the <br />authorized loan amount, the STATE shall apply the remaining loan funds to reduce the <br />. final loan amount and the annual loan payment shall remain the same. If the final loan <br />amount is less than 90% of the AUTHORIZED LOAN AMOUNT, the STATE may apply those <br /> <br />Columbine Ranches Property Owner's Association <br /> <br />Page 3 of 11 <br />