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<br />r~' <br /> <br />~.,.,......, <br />~) <br /> <br />13. Remedies for default. Upon default in the payments herein set forth to be made by the BORROWER, <br />or default in the performance of any covenant or agreement contained herein, the STATE, at its option, <br />may: <br /> <br />a. declare the entire principal amount and accrued interest then outstanding immediately due and <br />payable; and/or <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 default, <br />and add the amount of such expenditures to the principal of the loan amount; and/or <br /> <br />c. apply the funds contained in the CD ACCOUNT to repayment of the loan; and/or <br /> <br />d. act upon the security agreement and promissory note; and/or <br /> <br />e. t,ake any other appropriate 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 contract <br />is executed. The STATE'S exercise of any or all of the remedies described herein shall not relieve the <br />BORROWER of any of its duties and obligations under this contract. <br /> <br />14. In event of a conflict. In the event of conflict between the terms of this contract and conditions <br />as set forth in any of the appendices, the provisions of this contract shall control. <br /> <br />15. 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, a assessments levied for that purpose as authorized by <br />resolution of the BORROWER. Furthermore, BORROWER agrees that <br /> <br />a. Revenues for this loan are to be kept separate. The BORROWER hereby pledges such revenues <br />to repay the STATE loan, agrees that these revenues shall be set aside and kept in an account <br />separate from other BORROWER revenues, and warrants that these revenues shall not be used for <br />any other purpose. <br /> <br />b. Establish security interest in the revenues. The BORROWER agrees that, in order to provide a <br />security interest for the STATE in the pledged revenues so that the STATE shall have priority over <br />all other competing claims for such revenues, it shall execute a Security Agreement, attached as <br />Appendix C and incorporated herein. Furthermore, the BORROWER acknowledges that the STATE <br />shall perfect its security interest by filing a Uniform Commercial Code Financing. Statement with <br />the Colorado Secretary of State. <br /> <br />c. Assessments for repayment of the loan. The BORROWER shall, pursuant to its statutory <br />authority, articles of incorporation and by-laws, and as authorized by its resolutions, annually seek <br />from its stockholders sufficient assessments, and take all other necessary actions consistent <br />therewith to levy assessments sufficient to pay this contract loan in a timely manner and as <br />required by the terms and conditions of this contract. Should the stockholders fail to set any such <br />assessments, the BORROWER shall make adequate assessments for the purpose of repaying its <br />obligations under this contract pursuant to ~ 7-42-104(2), C.R.S. (1986). In addition, in the event <br />the assessments levied by the BORROWER become insufficient to assure repayment to the STATE <br /> <br />Bravo Ditch Company <br /> <br />Page 6 of 11 <br /> <br />Loan Contract <br />