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8. Collateral During Repayment. The BORROWER shall not 'sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the CD ACCOUNT 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. 9. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 10. 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 that the pledged 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 D and incorporated herein, and an Assignment of Deposit Account as Security, attached as Appendix E and incorporated herein, prior to the disbursement of any loan funds. The BORROWER acknowledges that the STATE 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 STATE, the BORROWER 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 STATE. d. Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory authority, articles of incorporation, bylaws, and resolutions, the BORROWER shall levy assessments from time to time as necessary to provide sufficient 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 on an annual basis for the first ten years of this loan. River Oaks On The Roaring Fork Property Owners Association, Inc, Page 4 of 11 Loan Contract