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<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 />th is 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 liens or in any other manner. <br /> <br />12. Collateral. Part of the security provided for this loan shall be 100% interest in two <br />certificates of deposit accounts (CD ACCOUNT), each established by the BORROWER and each <br />in the amount of $3,365.00, and each CD ACCOUNT shall be evidenced by an Assignment of <br />Certificate of Deposit in the form attached as Appendix 4 and incorporated herein. The <br />BORROWER shall provide the first CD ACCOUNT and its <::orresponding Assignment of <br />Certificate of Deposit upon the execution of this contract and the BORROWER shall provide the <br />second CD ACCOUNT and its corresponding Assignment of Certificate of Deposit prior to the <br />disbursement of any loan funds in 1998. The STATE shall use the funds contained in the CD <br />ACCOUNTS for the purpose of paying principal and interest due under this contract not <br />otherwise paid by the BORROWER. Any amount withdrawn by the STATE for this purpose shall <br />be replenished by the BORROWER within sixty days after such withdrawal. The STATE shall <br />not disburse any loan funds under this contract until the BORROWER has established the CD <br />.ACCOUNTS. <br /> <br />13. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, <br />transfer, mortgage, pledge, encumber, or otherwise dispose of the CD ACCOUNTS provided <br />as security for this loan, or any of the assessment revenues pledged to repay the loan herein, <br />so long as any of the principal and any accrued interest on this loan which remain unpaid, <br />without the prior written concurrence of the STATE. ... <br /> <br />14. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes <br />of repayment of this loan revenues from assessments 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 stockholders (hereinafter collectively referred to as the "pledged property"). <br />Furthermore, BORROWER agrees that <br /> <br />a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees <br />that the pledged revenues shall be set aside and kept in an account separate from other <br />BORROWER revenues, and warrants that these revenues shall not be used for any other <br />purpose. <br /> <br />b. Establish Security Interest. The BORROWER 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 5 and incorporated herein, and an Assignment of Deposit Account <br />as Security, attached as Appendix 6 and incorporated herein, prior to the disbursement <br />of 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 authorized by its resolution, the BORROWER shall <br /> <br />The Durkee Ditch Company, Inc. <br /> <br />Page 6 of 13 <br /> <br />Loan Contract <br />