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<br />14. Remedies for default. Upon default in the payments herein set forth to be made by the <br />BORROWER, or default in the performance by the TOWN or the BORROWER of any covenant or agreement <br />contained herein, the 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. apply the funds contained in the CD ACCOUNT to repayment of the loan; <br /> <br />d. act upon its security interest and the promissory note; <br /> <br />e. take any other appropriate action. <br /> <br />All remedies described herein may be simultaneously or selectively and successively enforced. <br />The provisions of this contract may be enforced by the STATE at its option without regard to prior <br />waivers of previous defaults by the TOWN and/or the BORROWER, through judicial proceedings to <br />require specific performance of this contract, or by such other proceedings in law or equity as may <br />be deemed necessary by the STATE to ensure compliance with provisions of this contract and the <br />laws and regulations under which this contract is executed. The STATE'S exercise of any or all of the <br />remedies described herein shall not relieve the TOWN and/or the BORROWER of any of their duties and <br />obligations under this contract. <br /> <br />15. In event of a conflict. In the event of conflict between the terms and conditions as set forth <br />in the any of the appendices, the provisions of this contract shall control. <br /> <br />16. Progress reports. The BORROWER shall, with the assistance of the CONSULTANT, prepare a <br />periodic progress report which contains a statement of the PROJECT construction costs expended for <br />that period and shall forward said statement to the STATE. <br /> <br />17. Periodic inspections. The BORROWER shall permit the STATE to make periodic inspections of <br />its construction, operations and accounts by a designated representative of the STATE. Any such <br />inspections by the STATE are solely for the purpose of verifying compliance with the terms and <br />conditions of the contract and shall not be construed nor interpreted as an approval of the actual <br />design and/or construction of any element of the PROJECT. <br /> <br />18. No dissolution of water enterprise. The TOWN and the BORROWER agree not to terminate or <br />dissolve the BORROWER, nor adversely withdraw or deplete its assets, nor otherwise adversely affect <br />the BORROWER'S ability to perform during the term of this contract. <br /> <br />19. Adhere to applicable laws. The TOWN and the BORROWER shall strictly adhere to all applicable <br />federal, state, and local laws and regulations that are in effect or may hereafter be established <br />throughout the term of this contract. <br /> <br />B. The STATE agrees as follows: <br /> <br />1. Agreement to loan money. The STATE agrees to loan to the BORROWER an amount not to <br />exceed that specified in the promissory note provisions of this contract. <br /> <br />Town of Johnstown Water Activity Enterprise <br />& Town of Johnstown Page 8 of 14 <br /> <br />Loan Contract <br />