C153770 Contract - Laserfiche WebLink

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/ indebtedness, and b. Levy assessments in an amount sufficient to pay the annual amounts due under this contrect, and c. To place the assessment revenues pledged to make annual-loan payments in a special account separate and apart from other BoRROwER revenues, in accordance with the Pledge of Property Provisions of this contract, and d. To make annual payments in accordance with the promissory note, and e. To make annual deposits to a reserve debt service fund in accordance with the Pledge of Property Provisions of this contract, and f. Execute a Security Agreement and an Assignment Of Deposit Account As Security to secure the revenues. pledged herein in accordance with the Pledge of Property Provisions of this conVact. Said resolutions are attached hereto as Appendix A and incorporated herein. 8. Attorney's Opinion Letter. Prior to the execution of this contract by the SrA7E, the BoRROwER shall submit to the STa.TE a letter from its attorney stating that it is the attomey's opinion that the person signing for the BoRROwER was duly elected or appointed and has authority to sign such documents on behalf of the BORROWER end t0 bl(1d thB BORROWER; thet th2 BORROWER shareholders and board of directors have validly adopted re5olutions approving this contract; that there are no provisions in the BORROWER'S articles of incorporetion or by-laws or any state or local law that prevent this contract from binding the BoRROwER; and that the contract will be valid and binding against the BoRROwER if entered into by the STaTE. 9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and evidencing this debt is attached as Appendix B and incorporated herein. a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan funds for construction of the Project, the Promissory Note may be adjusted in accordance with the Changes Provisions of this contract. b. Interest During Construction. As the loan funds are disbursed by the S7ATE to the BoRROwER during construction, interest shali accrue at the rate of 3'/<%. The amount of the interest accnied during construction shall be calculated by the STqTE on each anniversary of the date of first disbursement and the BORROwER shall repay that amount to the STa,TE within ten (10) days. The final calculation of interest during construction shall be made when the STArE detertnines that the PRO�ECr has been substantiaily compieted, and, at the SrArE'S discretion, the amount shall paid by the BoRROwER within 10 days or shall be deducted from the final disbursement of loan funds that the STATE makes to the BoRROwER. 10. Changes. The STa,TE may decrease the amount of the loan under this contract or extend the time for completion of the PRO�EC7 through a REVisioN LE7TER, approved by the State Controller or his designee, in the form attached hereto as Appendix C. The REVisioN LErreR shall not be valid until approved by the State Controller or such assistant as he may designate. Upon proper execution and approval, the REVisioN LErTER shall become an amendment to this contract and, except for the Speciai Provisions of the contract, the REViSioN LETrER shall supersede the conVact in the event of a conflict between the two. The parties understand and agree that the ReviSioN LErTER may be used only for decreasing the final loan amount or to extend the time for completion of the PROJECT. In the event that the parties execute the REVisioN LerrER to decrease the amount of the loan, the parties shall amend the Promissory Note and all documents executed by the BoRROWER to convey security interests to the STarE as required by this contract to reflect the decreased loan amount. Summit Reservoir & Irrigation Company Page 4 of 11 Loan Contract