|
<br />execution and delivery of this contract and the performance and observation of its terms
<br />conditions and obligations have been duly authorized by all necessary actions of the
<br />BORROWER.
<br />
<br />c, The BORROWER warrants that it has not employed or retained any company or person. other
<br />than a bona fide employee working solely for the BORROWER. to solicit or secure this contract
<br />and has not paid or agreed to pay any person, company, corporation, individual, or firm, other
<br />than a bona fide employee, any fee, commission, percentage, gift, or other consideration
<br />contingent upon or resulting from the award or the making of this contract. '
<br />
<br />d, The BORROWER warrants that the property identified in the Collateral Provisions of this
<br />contract is not encumbered by any other deeds of trust to or liens of any party other than the
<br />STATE or in any other manner,
<br />
<br />~ ' 12. Collateral. Part of the security provided for this loan, as evidenced by the executed Deed of
<br />Trust, attached as Appendix 4 and incorporated herein, shall be an undivided one hundred
<br />percent (100%) interest in the following, hereinafter referred to as Security: all easements and
<br />rights-of-way appurtenant thereto, all improvements thereon, and all other physical and legal
<br />features known as Equalizer Reservoir, consisting of approximately 70.925 acres, located in
<br />Larimer County, Colorado, as more particularly described in the deed of trust.
<br />
<br />13. Collateral During Repayment The BORROWER shall not sell, convey, assign, grant, transfer,
<br />mortgage, pledge, encumber, or otherwise dispose of any of the property provided as security for
<br />this loan, or any of the assessment revenues pledged to repay the loan herein, so long as any of
<br />the principal and any accrued interest on this loan which remain unpaid, without the prior written
<br />concurrence of the STATE. In the event of any such sale. transfer or encumbrance without the
<br />STATE'S written concurrence, the STATE may at any time thereafter declare all outstanding
<br />principal and interest on this loan immediately due and payable,
<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 Property. The BORROWER hereby irrevocably pledges to the STATE for purposes of
<br />repayment of this loan revenues from assessments levied for that purpose as authorized by the
<br />BORROWER'S resolution and all of the BORROWER'S rights to receive said assessment revenues
<br />from its members (hereinafter collectively referred to as the 'pledged property"), Furthermore,
<br />BORROWER agrees that
<br />
<br />a, Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees to set
<br />aside and keep the pledged revenues in an account separate from other BORROWER
<br />revenues, and warrants that it shall not use the pledged revenues for any other purpose,
<br />
<br />b, Establish Security Interest. The BORROWER agrees that, in order to provide a security
<br />interest for the STATE in the pledged property so that the STATE shall have priority over all
<br />other competing claims for said property, it shall execute a Security Agreement, attached
<br />hereto as Appendix 5 incorporated herein, prior to the disbursement of any loan funds, and
<br />an Assignment of Deposit Account as Security, in the form attached as Appendix 6 and
<br />incorporated herein, The BORROWER acknowledges that the STATE shall perfect its security
<br />interest in the BORROWER'S right to receive assessment revenues by filing a UCC-1 Form with
<br />the Colorado Secretary of State,
<br />
<br />Greeley & Loveland
<br />Irrigation Company
<br />
<br />Page 6 of 13
<br />
<br />Loan Contract
<br />
|