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<br />"\ <br /> <br />c. The BORROWER warrants that it has not employed or retained any company or person, <br />other than a bona fide employee worl<ing solely for the BORROWER, to solicit or secure <br />this contract and has not paid or agreed to pay any person, company, corporation, <br />individual, or firm, other than a bona fide employee, any fee, commission, percentage, <br />gift, or other consideration contingent upon or resulting from the award or the making of <br />this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this <br />contract is not encumbered by any other deeds of trust to or liens of any party other <br />than the STATE or in any other manner, <br /> <br />12. Collateral. Part of the security provided for this loan, as evidenced by the executed Deed of <br />Trust attached as Appendix C and incorporated herein, shall be an undivided one hundred <br />percent (100%) interest in BORROWER'S C@r1 Smith Reservoir and all enlargements thereof, <br />including all easements and water rigl1ts associated therewith, as more particularly <br />described in the attached Deed of Trust, hereinafter referred to as "collateral". <br /> <br />13. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes <br />of repayment of this loan revenues from a~sessments levied for that purpose as authorized <br />by the BORROWER'S resolution and all of the BORROWER'S rights to receive said assessment <br />revenues from its members (hereinafter c(Jllectively referred to as the "pledged property"). <br />Furthermore, BORROWER agrees that: <br /> <br />a. Revenues For This Loan Are To Be ~ept Separate. The BORROWER hereby agrees to <br />set aside and keep the pledged revenues in an account separate from other BORROWER <br />revenues, and warrants that it shall not use the pledged revenues for any other purpose. <br /> <br />b. Establish Security Interest. The BORFWWER agrees that, in order to provide a security <br />interest for the STATE in the pledged property so that the STATE shall have priority over all <br />other competing claims for said property, it shall execute a Security Agreement, attached <br />hereto as Appendix D incorporated herein, and an Assignment of Deposit Account as <br />Security, attached as Appendix E and incorporated herein, prior to the disbursement of <br />any loan funds. The BORROWER acknOwledges that the STATE shall perfect its security <br />interest in the BORROWER'S right to receive assessment revenues by filing a UCC-1 Form <br />with the Colorado Secretary of State. <br /> <br />c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, articles <br />of incorporation and by-laws, and as ;:Iuthorized by its resolution, the BORROWER shall <br />take all necessary actions consistent therewith to levy assessments sufficient to pay this <br />loan as required by the terms of this contract and the promissory note. In the event the <br />assessments levied by the BORROWER become insufficient to assure such repayment to <br />the STATE, the BORROWER shall immediately take all necessary action consistent with its <br />statutory authority, its articles of incorporation, bylaws and resolution, including, but not <br />limited to, levying additional assessments to raise sufficient revenue to assure <br />repayment of the loan to the 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 /> <br />Leroux Creek Water Users' Association <br /> <br />Page 6 of 13 <br /> <br />Loan Contract <br />