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<br />--~, ~ <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 <br />other BORROWER revenues, and wammts that these revenues shall not be used for <br />any other purpose. <br /> <br />b. Establish Security Interest. The BORROWER agrees that, in order to provide a <br />security interest for the STATE in the pledged property so that the STATE shall have <br />priority over all other competing claims for said property, it shall execute a Security <br />Agreement, attached hereto as Appendix F incorporated herein, and an <br />Assignment of Deposit Account as Security, attached as Appendix G and <br />incorporated herein, prior to the disbursement of any loan funds. The BORROWER <br />acknowledges that the STATE shall perfect its security interest in the BORROWER'S <br />right to receive dues and assessment revenues by filing a UCC-1 Fonm with the <br />Colorado Secretary of State. <br /> <br />c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, <br />articles of incorporation and by-laws, and as authorized by its resolution, the <br />BORROWER shall take all necessilry actions consistent therewith to levy <br />assessments sufficient to pay this loan as required by the tenms of this contract <br />and the promissory note. In the event the assessments levied by the BORROWER <br />become insufficient to assure such repayment to the STATE, the -BORROWER shall <br />immediately take all necessary action consistent with its statutory authority, its <br />articles of incorporation, bylaws and resolution, including, but not limited to, levying <br />additional assessmehts to raise sufficient revenue to assure repayment of the loan <br />to the STATE. <br /> <br />11. Collateral During Repayment. The BORROWER shall not sell, convey, assign, grant, <br />transfer, mortgage, pledge, encumber, or otherwise dispose of any collateral for this <br />loan, or any portion thereof or the revenues pledged to repay the loan herein, so long <br />as any of the principal and any accrued interest required by the Promissory Note <br />Provisions of the contract remain unpaid without the prior written concurrence of the <br />STATE. <br />12. Remedies For Default. Upon default in the payments herein set forth to be made by <br />the BORROWER, or default in the performance of any covenant or agreement contained <br />herein, the STATE, at its option, may: <br /> <br />a. declare the entire prinCipal amount and accrued interest then outstanding <br />immediately due and payable; <br /> <br />b. act upon the Promissory Note, Security Agreement, and Assignment Of Deposit <br />Account As Security; <br /> <br />c. apply the funds contained in the CD ACCOUNT to the repayment of the loan; andlor <br /> <br />d. take any other appropriate action. <br /> <br />All remedies described herein may be simultaneously or selectively and successively <br />enforced. The provisions of this contract may be enforced by the STATE at its option <br />without regard to prior waivers of previous defaults by the BORROWER, through judicial <br /> <br />Feasibility Report Loan Contract <br /> <br />Page 5 of 11 <br />