C153770 Contract

• Contract/PO #: C153770
• Contractor Name: Summit Reservoir and Irrigation Company
• Contract Type: Loan
• Water District: 32
• County: Montezuma
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Contract Documents

its security interest in the BORROwER right to receive assessment revenues by filing a UCC-1
Form with the Colorado Secretary of State.
c. Assessments For Repayment Of The Loan. Pursuant ta_=its statutory authority, articles of
incorporetion and by-laws, and as authorized by its resoiution, the BoRROWER shall annually seek
from its stockholders sufficient assessments and take all other necessary actions consistent
therewith to fevy assessments sufficient to pay this loan as required by the terms and conditions
of this contract. Should the stockholders fail to set any such assessments, the BoRROwER shail
make adequate assessments for the purpose of repaying its obiigations under this contract
pursuant to § 7-42-104(2), C.R.S. (1986).
d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory authority,
articles o€ incorporation, by-laws, and resolutions, the BoRROwER shall levy assessments from
time to time as necessary to provide sufficient fu�ds for adequate operation and maintenance,
emergency repair services, obsolescence reserves and debt service reserves. BoRROweR shall
deposit an amount equal to one-tenth of an annuai payment into its debt service reserve fund on
an annual basis for the first ten years of this loan.
16. Remedies For Defauit. Upon default in the payments herein set forth to be made by the BoRROwER,
or tlefault in the performance of any covenant or agreement contained herein, the STaTE, at its option,
may:
a. deciare the entire principai amount and accrued interest then outstanding immediately due and
payable;
b. incur and pay reasonable expenses for repair, maintenance, and operation of the PRO�ECT
facilities herein described and such expenses as may be necessary to cure the cause of default,
and add the amount of such expenditures to the principal of the loan amount;
c. act upon the Promissory Note, Security Agreement, Assignment Of Certificate Of Deposit, and
Assignment Of Deposit Account As Security
d. apply the funds contained in the CD Accourn to the repayment of the loan;
e. take any other appropriate action.
All remedies described herein may be simultaneously or selectively and successively enforced. The
provisions of this contract may be enforced by the S'rare 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
STarE to ensure compliance with provision5 of this contract and the laws and regulations under
which this contract is executed. The STarE's exercise of any or all of the remedies described herein
shall not relieve the BoRROweR of any of its duties and obligations under this contract.
17. Progress Reports. The BoRROwER shall, with the assistance of the CoNSULTar�r, prepare a periodic
progress report which contains a statement of the PRO�ECT costs expended for that period and shall
forvvard said statement to the STaTE.
18. Periodic Inspections. Throughout the term of this contract, the BORROWER shail permit a
designated representative of the STATE t0 make periodic inspections Of the PROJECT. SUCh
inspections are solely for the purpose of verifying compliance with the terms and conditions of this
contract. Furthermore, such inspections shall cover the condition of the PRO�ecr, operating records,
maintenance records, and financiai records, and shall not be construed nor interpreted as an approval
of the actual design and/or construction of any element of the PROdeCT facilities.
19. Adhere To Applica6le Laws. The BoRROWER shall strictly adhere to ali applicable federal, state,
.�a
Summit Reservoir & Icrigation Company Page 6 of 11 Loan Contract
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