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<br />receive assessment revenues by filing a UCC-1 Form with the Colorado Secretary of State.
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<br />c. Assessments. For Repayment Of The Loan. Pursuant to its statutory authority, articles of
<br />incorporation-and by-laws, and as authorized by its resolution, the BORROWER shall take all
<br />necessary actions consistent therewith to levy assessments sufficient to pay this loan as
<br />required by the terms of this contract and the promissory note. In the event the assessments
<br />levied by the BORROWER become insufficient to assure such repayment to the STATE, the
<br />BORROWER shall immediately take all necessary action consistent with its statutory authority,
<br />its articles of incorporation, bylaws and resolution, including, but not limited to. levying
<br />additional assessments to raise sufficient revenue to assure repayment of the loan to the
<br />STATE.
<br />
<br />d, Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory
<br />authority, articles of incorporation, by-laws, and resolutions, the BORROWER shall levy
<br />assessments from time to time as necessary to provide sufficient funds for adequate
<br />operation and maintenance, emergency repair services, obsolescence reserves and debt
<br />service reserves. BORROWER shall deposit an amount equal to one-tenth of an annual
<br />payment into its debt service reserve fund one year from the first loan disbursement, and
<br />annually thereafter for the first ten years of this loan,
<br />
<br />14. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify
<br />the STATE of any change of the use of the water rights represented by its shares from irrigation
<br />to municipal or commercial use, at which time the STATE shall adjust the interest rate on that
<br />portion of the outstanding loan amount corresponding to the percentage of shares for which
<br />the use has been changed to the CWeB's municipal or commercial rate in effect at the time of
<br />the change of use of the water rights, The parties shall execute a contract amendment to
<br />effect said change in interest rate,
<br />
<br />15. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, transfer,
<br />mortgage, pledge, encumber, or otherwise dispose of the property provided as security for this
<br />loan. so long as any of the principal, all accrued interest, and late charges, if any, on this loan
<br />remain unpaid, without the prior written concurrence of the STATE. In the event of any such
<br />sale, transfer or encumbrance without the STATE'S written concurrence. the STATE may at any
<br />time thereafter declare all outstanding principal and interest on this loan immediately due and
<br />payable.
<br />
<br />16. Remedies For Default. Upon default in the payments herein set forth to be made by the
<br />BORROWER, or default in the performance of any covenant or agreement contained herein, the
<br />STATE, at its option. may:
<br />
<br />a. declare the entire principal amount and accrued interest then outstanding immediately due
<br />and payable;
<br />
<br />b, incur and pay reasonable expenses for repair. maintenance, and operation of the PROJECT
<br />facilities herein described and such expenses as may be necessary to cure the cause of
<br />default. and add the amount of such expenditures to the principal of the loan amount;
<br />
<br />c, take possession of the PROJECT facilities, repair, maintain, and operate or lease them;
<br />
<br />d, exercise its rights under the Promissory Note. Security Agreement, Assignment Of Deposit
<br />Account As Security, and Deed Of Trust,
<br />
<br />North Poudre Irrigation Company
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<br />Loan Contract
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