C153833 Contract - Laserfiche WebLink

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completion of the PROJECT. In the event that the parties execute the REVISION LETTER 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 STATE as required by this contract to reflect the decreased loan arROunt. 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 shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loan money to the STATE 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 BORROWER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the BORROWER. to solicit or secure this contract and has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other consideration 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 deeds of trust to or liens of any party other than the STATE or in any other manner. 12. Collateral. Part of the security provided for this loan, as evidenced by the executed Deed of Trust attached as Appendix 4 and incorporated herein, shall be an undivided one hundred percent (100%) interest in BORROWER'S North Poudre Reservoirs #5 and #6, all appurtenant structures thereto, all lands upon which these reservoirs lie, and all easements and rights-away appurtenant thereto, as more particularly described in the attached Deed of Trust, hereinafter referred to as "collateral." 13. 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 resolution and all of the BORROWER'S rights to receive said assessment revenues from its members (hereinafter collectively referred to as the "pledged property"). Furthermore. BORROWER agrees that: a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees to set aside and keep the pledged revenues in an account separate from other BORROWER revenues, and warrants that it shall not use the pledged revenues 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 5 incorporated herein, prior to the disbursement of any loan funds, and an Assignment of Deposit Account as Security, in the form attached as Appendix 6 and incorporated herein, upon substantial completion of the Project. The BORROWER acknowledges that the STATE shall perfect its security interest in the BORROWER'S right to North Poudre Irrigation Company Page 6 of 13 Loan Contract