|
<br />7-42-104(2), C.R.S. (1986). In addition, in the event the assessments levied by the
<br />BORROWER become insufficient to assure repayment to the STATE as required by the terms
<br />and conditions of this contract, then the BORROWER shall immediately take all necessary
<br />action consistent with its statutory authority, its articles of incorporation, by-laws and
<br />resolutions, including, but not limited to, levying additional assessments to raise sufficient
<br />revenue to assure repayment of the loan to the STATE.
<br />
<br />d. Assessments for operations. maintenance and reserves. The BORROWER shall, pursuant
<br />to its statutory authority, articles of incorporation, by-laws, and resolutions, levy
<br />assessments from time to time as necessary to provide sufficient funds for adequate
<br />operation and maintenance, emergency repair services, obsolescence reserves and debt
<br />reserves. BORROWER shall deposit an amount equal to one-tenth of an annual payment into
<br />its reserve debt service fund on an annual basis for the first ten years of this loan.
<br />
<br />8. Collateral. Part of the security provided for this loan shall be a security interest in an
<br />undivided one hundred percent interest in the following, hereinafter referred to as COLLATERAL: all
<br />revenues derived from handling fees paid by Pioneer Water and Irrigation, Inc, to the BORROWER
<br />pursuant to an Agreement recorded in the Office of the Clerk and Recorder of Morgan County on May
<br />14, 1987, in Book 891 at Page 338. The BORROWER has executed a Conditional Assignment of
<br />Contract Proceeds, attached as APPENDIX C and incorporated herein, assigning the STATE its right,
<br />title and interest in and to the income from said handling fees in the event of default by the BORROWER
<br />under this contract, and has executed a UCC DOCUMENT, referenced above, to convey to the STATE
<br />a security interest in all the revenues derived from said handling fees.
<br />
<br />9. Collateral during repayment. The BORROWER shall not sell, convey, assign. grant, transfer,
<br />mortgage, pledge, encumber, or otherwise dispose of any collateral for this loan, including the
<br />assessments and handling fee revenues pledged to repay the loan herein, so long as any of the
<br />principal and any accrued interest required by the Promissory Note Provisions of the contract remain
<br />unpaid, without the prior written concurrence of the STATE.
<br />
<br />10. Remedies for default. Upon default in the payments herein set forth to be made by the
<br />BORROWER, or default in the performance of any covenant or agreement contained herein, the STATE,
<br />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, act upon the UCC DOCUMENTS, Conditional Assignment of Contract Proceeds and
<br />promissory note;
<br />
<br />d. 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 BORROWER, through judicial proceedings to require specific
<br />performance of this contract, or by such other proceedings in law or equity as may be deemed
<br />necessary by the STATE to ensure compliance with provisions of this contract and the laws and
<br />regulations under which this contract is executed, The STATE'S exercise of any or all of the remedies
<br />
<br />Tremont Mutual Ditch Company
<br />
<br />Page 5 of 10
<br />
<br />Loan Contract
<br />
|