C153770 Contract - Laserfiche WebLink

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11. Warranties. a. The BoRROwER warrants that by acceptance of the loan money pursuant to the terms of this contract and by the BORROwER's representation herein, the BoRROwER shali be estopped from . assering for any reason that it is not authorized or obfigated to repay the loan money to the STare as required by this contract. b. 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. c. The Bor RowER warrants that it has not empioyed or retained any company or person, other than a bona fide employee working solely for the BoRROwER, to solicit or secure this contrect and has not paid or agreed to pay any person, company, corporation, individual, or firtn, other than a bona fide empioyee, any fee, commission, percentage, gift, or other consideretion contingent upon or resulting from the award or the making of this contract. d. The BoRROweR warrants that the property identified in the Collateral Provisions of this contract is not encumbered by any other liens of any party other than the STa� or in any other manner. 12. Coilaterai. In addition to the revenues pledged as repayment for this loan, part of the security provided for this loan, shall be an undivided 100% interest in the foilowing, hereinafter referred to as SECURirr, a certificate of deposit account established by the BoRROwER in the amount of one annual loan payment ($11,217.52), hereinafter referred to as CD ACCOUt�t7, as evidenced by the executed Assignment of Certificate of Deposit, attached as AaPeN�ix D and incorporated herein. The STATE shall use the funds contained in the CD ACCOUN'r for the purpose of paying principal and interest due under this contract not otherwise paid by the BoRROwER. Any amount withdrawn by the STqTE for this purpose shall be repienished by the BoRROwER within sixty days after such withdrawal. The STATE shall not disburse any loan funds under this contract until the BoRROweR has established the CD ACCOUNT. 13. Collateral During Repayment. The BORROwER shall not sell, convey, assign, grant, Vansfer, mortgage, pledge, encumber, or otherwise dispose of the CD ACCOUr� provided as security for this loan, or any of the assessment revenues pledged to repay the loan herein, so long as any of the principal and any accrued interest on this loan which remain unpaid, without the prior written concurrence of the STATE. 14. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions as set foRh in any of the appendices, the provisions of this contract shail control. 15. Pledge Of Property. The BoRROwER hereby irrevocably pledges to the STATe for purposes of repayment of this loan revenues from assessments levied for that purpose as authorized by the BoRROwER's resolutions and ail of the BoRROWER's rights to receive assessment revenues from its shareholders (hereinafter coliectively referred to as the "pledge propert�'). Furthermore, BORROwER agrees that a. Revenues For This Loan Are To Be Kept Separate. The BoRROwER hereby agrees that the piedged revenues shall be set aside and kept in an account separate from other BoRROwER revenues, and warrants that these revenues shall not be used for any other purpose. b. Establish Security interest. The BoRROWER agrees that, in order to provide a security interest for the STATE in the pledged property so that the STATE shall have priority over all other competing claims for said property, it shall execute a Security Agreement, attached hereto as Appendix E ana incorporated herein, and an Assignmert Of Deposit Account As Security, attached hereto as Appendix F and incorporated herein. The BoRROwER acknowledges that the STATE shali perfect Summit Reservoir & Irrigation Company Page 5 of 11 Loan Contract