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<br />iil The STATE agree~ cO return possession and control of thEo r'ROJECT to the BORROWER as soon <br />as possible after the default has been cured and the BORROWER reasonably demonstrates <br />that the BORROWER is competent to operate, maintain and repair the PROJECT in a manner <br />consistent with this contract. <br /> <br />jji) The STATE shall not take possession of the PROJECT if the BORROWER default in payment is <br />caused by an order of the Colorado State Engineer prohibiting storage and release of <br />water from th" PROJECT. <br /> <br />d. act upon the security interest, stock assignment, and promissory note; <br /> <br />e. take any other appropriate legal action. <br /> <br />All remedies described herein may be simultaneously or selectively and successively enforced. The <br />provisions of this contract may be enforced by the STATE at its option without regard to prior waivers of <br />previous defaults by the BORROWER, throUgh judicial proceedings to require specific performance of this <br />contract, or by such other proceedings in law or equity as may be deemed necessary by the STATE to <br />ensure compliance with provisions of this contract and the laws and regulations under which this <br />contract is entered Into. . <br /> <br />11. No sale or conveyance of any collateral until the loan Is repaid. The BORROWER shall not sell, <br />convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PROJECT, <br />collateral, or any portion thereof or the assessment revenues pledged to repay the loan herein, so long <br />as any of the principal and any accrued interest required by the promissory note proviSions of the <br />contract remain unpaid without the prior written concurrence of the STATE. <br /> <br />12. This contract controls If there Is a conflict. In the event of conflict between the terms and <br />conditions as set forth in the any of the appendices, provisions of this contract shall control. <br /> <br />13. Pledge of revenues. The BORROWER agrees that the specific revenues to be pledged to repay the <br />STATE shall include, but not be limited to, an assessment levied for that purpose as authorized by the joint <br />resolution of the TOWN and the BORROWER. <br /> <br />a. Revenues for this loan are to be kept separate. The BORROWER hereby irrevocably pledges <br />such revenues to repay the STATE loan, and agrees that these revenues will be set aside and kept <br />in an account separate from other BORROWER revenues, warrants that these revenues will not be <br />used for any other purpose, and agrees to provide the STATE a perfected security interest such <br />that the STATE has priority over all other competing claims for such secured revenues, except the <br />San Miguel Water Conservancy District water revenue bonds, Case No. 05-057-0001328716, <br />now held by the Ceneral Electric Corporation. <br /> <br />b. Establish security Interest In the revenues. The BORROWER agrees that, in order to provide <br />a security interest for the STATE irrevocably pledging such revenues on the date of execution of <br />this contract, it will provide a Uniform Commercial Code Security Agreement and Financing <br />Statement, completed and properly executed, incorporated herein as APPENDIX F. No monies <br />shall be advanced prior to BORROWER providing this form. <br /> <br />c. Renewal of UCC agreements In fourth year. The BORROWER will, within thirty (30) days prior <br />to the end of the fourth year that this contract is in effect and every five (5) years thereafter, <br />deliver to the STATE a fully and properly executed Continuation Statement (FOrm UCC.31 for each <br />of the UCC security Agreement and Financing Statements required by this contract. <br /> <br />d. Levy charges and fees for repayment of the loan. The BORROWER shall, pursuant to statutory <br />authority and as authorized by its resolution, take all necessary actions consistent therewith to <br />provide sufficient fu."is for adequate operation and maintenance, emergency repair services, <br />obsolescence reserves, debt reserves, and to establish revenues from water user charges and fees <br />sufficient to pay this contract loan in a timely manner and as required by the terms and <br />conditions herein to assure repayment of the loan to the STATE. In the event these revenues are <br />or become insufficient to assure repayment to the STATE as required by the terms and conditions <br />herein, then the BORROWER, upon written notice thereof from the STATE, shall immediately take all <br /> <br />NORWOOD WA TEA COMMISSION & TOWN OF NORWOOD <br /> <br />Page 6 01 11 Pages. <br /> <br />lOAN CONTRACT <br />