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<br />commission, percentage, gift, or other consideration contingent upon or resulting <br />from the award or the making of this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of <br />this contract is not encumbered by any other liens of any party other than the STATE <br />or in any other manner. <br /> <br />12. Collateral, Part of the security provided for this loan, as evidenced by the executed <br />Assignment of Certificate of Deposit attached as Appendix 0 and incorporated herein, <br />shall be an undivided one hundred percent (100%) interest in a certificate of deposit <br />account established by the BORROWI!:R in the amount of one annual loan payment <br />($11,554.05), hereinafter referred to as CD ACCOUNT. The STATE shall use the funds <br />contained in the CD ACCOUNT for the purpose of paying principal and interest due under <br />this contract not otherwise paid by the BORROWER. Any amount withdrawn by the STATE <br />for this purpose shall be replenished by the BORROWER within sixty days after such <br />withdrawal. The STATE shall not disburse any loan funds under this contract until the <br />BORROWER has established the CD ACCOUNT and provided the fully executed Assignment. <br /> <br />13. Pledge Of Property. The BORROWEOR hereby irrevocably pledges to the STATE for <br />purposes of repayment of this loan revenues from water charges and assessments levied <br />for that purpose as authorized by the BORROWER'S resolution, and all of the BORROWER'S <br />rights to receive said water charge and assessment revenues from its members <br />(hereinafter collectively referred to as the "pledged property"). Furthermore, BORROWER <br />agrees that <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 warrants 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 E and incorporated herein, and an <br />Assignment of Deposit Account as Security, attached as Appendix F 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 right <br />to receive water charge and assessment revenues by filing a UCC-1 Form 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 necessary actions consistent therewith to levy water charges <br />and assessments sufficient to pay this loan as required by the terms 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 articles <br />of incorporation, bylaws and resolution, including, but not limited to, levying additional <br />assessments to raise sufficient revenue to assure repayment of the loan to the STATE. <br /> <br />d. Assessments For Operations, Maintenance And Reserves. Pursuant to its <br /> <br />Pinon Mesa Ranches Community Association <br /> <br />Page 6 of 13 <br /> <br />Loan Contract <br />