C153796 Contract - Laserfiche WebLink

Home Browse Search

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 liens or in any other manner. 12. Collateral. Part of the security provided for this loan, as evidenced by the executed Assignment of Certificate of Deposit attached as Appendix 4 and incorporated herein, shall be an undivided one hundred percent (100%) interest in a certificate of deposit account established by the BORROWER in the amount of one annual loan payment ($8,020.53), hereinafter referred to as CD ACCOUNT. The STATE shall use the funds contained in the CD ACCOUNT for the purpose of paying principal and interest due under this contract not otherwise paid by the BORROWER. Any amount withdrawn by the STATE for this purpose shall be replenished by the BORROWER within sixty days after such withdrawal. The STATE shall not disburse any loan funds under this contract until the BORROWER has established the CD ACCOUNT. 13. 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. 14. 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 stockholders (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 5 incorporated herein, prior to the disbursement of any loan funds and shall provide an executed Assignment of Deposit Account as Security in the form attached as Appendix 6 and incorporated herein, within 30 days after the STATE determines that the PROJECT is substantially complete. 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 The Hawkeye Lateral Ditch Company Page 6 of 13 Loan Contract