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. - disburse any loan funds under this contract until the BORROWER has' established the CD ACCOUNT. Additional security provided for this loan, as evidenced by the executed Deed of Trust attached as Appendix 4 and incorporated herein, shall be an undivided one hundred percent (100%) interest in the Owl Creek Supply Ditch, as more particularly described in the attached Deed of Trust, hereinafter referred to as "collatera[." 13. Pledge Of Property. The BORROWER hereby irrevocably pledges to the CWCB 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 to set aside and keep the pledged revenues in an account separate from other BORROWER revenues, and warrants that it shall not use the pledged revenues for any other purpose, b. Establish Security Interest. The BORROWER agrees that, in order to provide a security interest for the CWCB in the pledged property so that the CWCB shall have priority over all other competing claims for said property, it shall execute a Security Agreement, attached hereto as Appendix 5 incorporated herein. The BORROWER acknowledges that the CWCB 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 al\ necessary actions consistent therewith te 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 CWCB, 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 ____ _ _~_ ____,QLtbe..loao.to_tile~QJ''_CB~ ___ _ ___,_ _ ___~________ _______ d. Assessments For Operations, Maintenance And Reserves, Pursuant to its statutory authority, articles of incorporation, by-laws, and resolutions, the BORROWER shall levy assessments from time te time as necessary to ?fCvide 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 one year from the first loan disbursement, and annua[ly thereafter for the first ten years of this loan. [n the event that the Borrower applies funds from this account to repayment of the loan, the Borrower shall replenish the account within ninety (90) days of withdrawal of the funds. 14. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify the CWCB of any change of the use of the water rights represented by its shares from irrigation to municipal or commercial use, at which time the CWCS, at its discretion, may adjust the interest rate on that portion of the outstanding loan amount corresponding to the percentage of shares for which the use has been changed to the CWCB's municipal or commercial rate in effect at the time of the change of use of the water rights. The parties Owl Creek Supply and Irrigation Company Page 6 of 13 Loan Contract