Laserfiche WebLink
<br />shall record the deed of trust contemporaneously with the deed(s) by which the BORROWER <br />acquires the water rights, and deliver the original recorded deed of trust to the STATE. In the <br />event that the BORROWER acquires additional Box Springs Water Rights with the proceeds of <br />this loan, it shall convey security interests in said water rights by execution and recording deeds <br />of trust and providing such deeds of trust to the STATE. <br /> <br />c. The loan funds deposited into the EscroW Account by the BORROWER in conjunction with the <br />Box Springs Sellers' deposit into said account of deed(s) to and assignments of the Box Springs <br />Water Rights pending final water court approval of the BORROWER'S augmentation plan, at <br />which time the BORROWER and the Box Springs Sellers shall close on the purchase of the Box <br />Springs Water Rights, provided that all contingencies in the Settlement Agreement have been <br />satisfied. The Escrow Account shall be administered in accordance with the terms of the <br />amended Escrow Agreement entered into by the BORROWER, the Box Springs Sellers and the <br />Escrow Agent, which is incorporated herein by reference. To convey a security interest to the <br />STATE in the funds contained in the Escrow Account, the BORROWER shall execute a Security <br />Agreement and an Assignment of EscrOW Account as Security, both of which are attached <br />hereto as Appendix 7 and incorporated herein. Not less than two weeks prior to the date of <br />closing on the purchase of the Box Springs Water Rights, the BORROWER shall request, in <br />writing, that the STATE release its security interest in the funds contained in the Escrow Account, <br />and shall inform the STATE of the amount of water rights the BORROWER will close on for <br />purposes of finalizing the deed of trust by which the BORROWER will convey a security interest to <br />the STATE in the Box Springs Water Rights. In the event that the BORROWER and/or the Box <br />Springs Sellers terminate the Purchase Agreement, the Escrow Agent shall deliver the funds <br />(principal) contained in the Escrow Account to the STATE within 5 working days of its receipt of <br />written joint notification from the BORROWER and the Box Springs Sellers that the Purchase <br />Agreement has been terminated. <br /> <br />The BORROWER may use up to $20,000 of the principal of the Escrow Account for lease/rental <br />payments to the Box Springs Sellers for LIse of the Box Springs Water Rights prior to closing on <br />the purchase of those water rights pursuant to a Lease of Water Rights entered into by the <br />BORROWER and the Box Springs Sellers dated January 29, 1997, with the written consent of the <br />CWCB. Any loan funds used for the lease/rental payments shall either be credited to the <br />purchase price of the Box Springs Water Rights, or in the event that the Borrower and/or the <br />Box Springs Sellers terminate the Purchase Agreement, the Borrower shall repay those funds <br />to the State within 90 days. CD ACCOUNT funds may be used by the BORROWER for such <br />repayment, with the STATE retaining its security interest in the balance of the CD ACCOUNT. <br /> <br />9, Pledge Of Property. As part of the security for this loan, the BORROWER hereby irrevocably <br />pledges to the STATE for purposes of repayn1ent of this loan revenues in the amount of the annual <br />payments due under this contract derived from assessments levied for that purpose as authorized <br />by the BORROWER'S resolutions ("Pledged Revenues") and all of the BORROWER'S rights to receive <br />said revenues from its members (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 that the <br />Pledged Revenues shall be set aside and kept in an account separate from other BORROWER <br />revenues ("Deposit Accounf'), 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 interest <br />for the STATE in the Pledged Property so that the STATE shall have priority over all other <br />competing claims for said property, it shall execute a Security Agreement, attached hereto as <br />Appendix 8 incorporated herein. The BORROWER agrees to execute an Assignment of Deposit <br />Account as Security, attached as Appendix 9 and incorporated herein, prior to the <br /> <br />The Horse Creek Water Users Association <br /> <br />page 5 of 11 <br /> <br />Loan Contract <br />