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<br />c, Assessments For Repayment Of'The Loan. Pursuant to its statutory' authority, articles of
<br />incorporation and by-laws, and as authorized by its resolution, the BORROWER shall take all
<br />necessary actions consistent therewith to levy assessments sufficient to pay th,is loan as
<br />required by the terms of this contract and the promissory note. In the event the assessments
<br />levied by the BORROWER become insufficient to assure such repayment to the STATE, the
<br />BORROWER shall immediately take all necessary action consistent with its statutory authority,
<br />its articles of incorporation, bylaws and resolution, including, but not limited to, levying
<br />additional assessments to raise sufficient revenue to assure repayment of the loan to the
<br />STATE.
<br />
<br />d, Assessments For Operations, Maintenance And Reserves. Pursuant to its statutory
<br />authority, articles of incorporation, by-laws, and resolutions, the BORROWER shall levy
<br />assessments from time to time as necessary to provide sufficient funds for adequate
<br />operation and maintenance, emergency repair services, obsolescence reserves and debt
<br />service reserves, BORROWER shall deposit an amount equal to one-tenth of an annual
<br />payment into its debt service reserve fund on an annual basis for the first ten years of this
<br />loan.
<br />
<br />14. Change of Use of Water Shares During Term of Contract. The BORROWER agrees to notify
<br />the STATE of any change of the use of the water rights represented by its shares from irrigation
<br />to municipal or commercial use, at which time the STATE shall adjust the interest rate, effective
<br />as of the date of change, on that portion of the outstanding loan amount corresponding to the
<br />, percentage of shares for which the use has been changed to the CWCB's municipal or
<br />commercial rate in effect at the time of the change of use of the water rights, The parties shall
<br />execute a contract amendment to effect said change in interest rate,
<br />
<br />15, Remedies For Default. Upon default in the payments herein set forth to be made by the
<br />BORROWER, or default in the performance of any covenant or agreement contained herein, the
<br />STATE, at its option, may:
<br />
<br />a, declare the entire principal amount and accrued interest then outstanding immediately due
<br />and payable;
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<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
<br />default, and add the amount of such expenditures to the principal of the loan amount;
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<br />c, take possession of the PROJECT facilities, repair, maintain, and operate or lease them;
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<br />d, exercise its rights under the Promissory Note, Security Agreement, Assignment Of Deposit
<br />Account As Security, and Deed Of Trust,
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<br />e, take any other appropriate action.
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<br />All remedies described herein may be simultaneously or selectively and successively enforced,
<br />The provisions of this contract may be enforced by the STATE at its option without regard to prior
<br />waivers of previous defaults by the BORROWER, through judicial proceedings to require specific
<br />performance of this contract, or by such other proceedings in law or equity as may be deemed
<br />necessary by the STATE to ensure compliance with provisions of this contract and the laws and
<br />regulations under which this contract is executed, The STATE'S exercise of any or all of the
<br />
<br />Greeley & Loveland
<br />Irrigation Company
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<br />Page 7 of 13
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<br />Loan Contract
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