C153771 Contract - Laserfiche WebLink

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approved by the State Controller or such assistant as he may designate. Upon proper execution and approval, the REVISION LETTER shall become an amendment to this contract and, except for the Special Provisions of the contract, the REVISION LETTER shall supersede the contract in the event of a conflict between the two. The parties understand and agree that the REVISION LETTER may be . used only for decreasing the final loan amount or to extend the time for completion of the PROJECT. The parties shall execute a REVISION LETTER to decrease the final loan amount in the event that the BORROWER repays a portion of the loan with state grant funds as contemplated in the Settlement Agreement. In the event that the parties execute the REVISION LETTER to decrease the amount of the loan, the parties shall amend the Promissory Note and all documents executed by the BORROWER to convey security interests to the STATE as required by the Collateral and Pledge of Property provisions of this contract to reflect the decreased loan amount. 7. Warranties. a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of this contract and by the BORROWER'S representation herein, the BORROWER shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loan money to the STATE as required by this contract. b. The BORROWER warrants that it has full power and authority to enter into this contract. The execution and delivery of this contract and the performance and observation of its terms, conditions and obligations have been duly authorized by all necessary actions of the BORROWER. c. The BORROWER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the BORROWER, to solicit or secure this contract and has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or the making of this contract. d. The BORROWER warrants that the property identified in the Collateral Provisions of this contract is not encumbered by any other liens of any party other than the STATE or in any other manner. 8. Collateral. In addition to the revenues pledged to repay this loan, the security provided for this loan shall be an undivided one hundred percent interest in the following: a. The principal of a certificate of deposit account established by the BORROWER in the amount of one annual loan payment ($35,691.46), hereinafter referred to as CD ACCOUNT. The STATE shall use the funds contained in the CD ACCOUNT for the purpose of paying principal and interest due under this contract not otherwise paid by the BORROWER. Any amount withdrawn by the STATE for this purpose shall be replenished by the BORROWER within sixty days after such withdrawal. To convey a security interest in the CD ACCOUNT to the STATE, the BORROWER has executed an Assignment of Certificate of Deposit which is attached as Appendix 5 and incorporated herein. Any interest eamed by the CD. ACCOUNT shall be available to the BORROWER for withdrawal. b. All of the Box Springs Water Rights obtained by the BORROWER pursuant to its January 29, 1997 Water Rights Purchase and Sale Agreement with the Box Springs Sellers, more particularly described as up to 46 c.f.s. out of the 60 cubic feet of water per second of time decreed to Box Springs Canal No.1, with an appropriation date of October 24, 1899, and an adjudication date of August 30, 1922, as adjudicated in the District Court for the County of Bent and the State of Colorado. To convey a security interest in said water rights to the STATE, the BORROWER shall execute a deed of trust when it closes on the purchase of 35 c.f.s. out of the Box Springs Water Rights in the form attached as Appendix 6 and incorporated herein, and The Horse Creek Water Users Association Page 4 of 11 Loan Contract