C150009 Contract

• Contract/PO #: C150009
• Contractor Name: Boulder and Left Hand Irrigation Company
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

a. Revenues For This Loan Are To Be Kept Separate. The BoaROwER hereby agrees to set
aside and keep the piedged revenues in an account separate from other BoRROwER revenues,
and warrants that it shall not use the pledged revenues for any other purpose.
Establish Security Interest. The BoRFOwER agrees that, in order to provide a security interest
for the STATE in the pledged properry so that the STATE Shall hBVB p�iOfity over aIl other
competing claims for said properry, it shall execute a Security Agreement, attached hereto as
Appendix 4 incorporated herein, and an Assignment of Deposit Account as Security, attached
as Appendix 5 and incorporated hefein, prior to the disbursement of any loan funds. The
BORROwER acknowiedges that the STa.TE shall perfect its security interest in the BORROwER's
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 to its statutory authority, articles of
incorporation and by-laws, and as authorized by its resolution, the BORROwER shall take all
necessary actions consistent therewith to levy assessments sufficient to pay this loan as required
by the terms of this contract and the promissory note. In the event the assessments levied by
the BoRROwER become insufficient to assure such repayment to the S'rATE, the BoRaoWER shall
immediately take all necessary action consistent with its statutory authority, its articles of
incorporation, bylaws and resolution, including, but not limited to, levying additional assessments
to raise sufficient revenue to assure repayment of the loan to the STarE.
d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory authority,
articles of incorporation, by-laws, and resolutions, the BoRROweR shall levy assessments from
time to time as necessary to provide sufficierit funds 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 annual payment into its debt service reserve fund
one year from the first loan disbursement, and annually thereafter for the first ten years of this
loan. -
13. Change of Use of Water Shares During 7erm of Contract. The BoRaowER agrees to
notify the STnTe of any change of the use of the water rights represented by its shares from
irrigation to municipal or commercial use, at which time the S'rATE shall adjust the interest rate
on that portion of the outstanding loan amount corresponding to the percentage of shares for
which the use has been changed to the CWCB's municipal or commercial rate in effect at the
time of the change of use of the water rights. The parties shall execute a contract amendment
to effect said change in interesi rate.
'14. Collaterai During Repayment. The BORROwER shall not sell, convey, assign, grant, transfer,
mortgage, pledge, encumber, ar otherwise dispose of the prope�ty provided as security for this
loan, so long as any of the principal, all accruad interest, and late cha�ges, if any, on this loan
remain unpaid, without the prior written concurrence of the STaTE. In the event of any such
sale, trartsfer or encumbrance without the STATE'S written concurrence, the STa,TE may at any
time thereafter declare all outstartding principal and interest on fhis loan immediately due and
payable.
15. Remedies For Default. Upon default in the payments herein set forth to be made by the
BoRROwER, or defauit in the performance of any covenant or agreement contained herein, the
STATE, dt its option, may:
a. decfare the entire principal amount and accrued interest then outstanding immediately due and
payabie;
Boulder 8 Left Hand Irrigation Company Page 6 ot 72 Loan Contract