C153707 Contract - Laserfiche WebLink

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..'-.- . collateral for this loan, including the PROJECT, or any portion thereof, including but not limited to the assessment revenues pledged to repay the loan herein, so long as any of the principal and any accrued interest required by the promissory note provisions of the contract remain unpaid without the prior written concurrence of the STATE. 12. This contract controls if there is a conflict. In the event of conflict between the terms of this contract and conditions as set forth in any of the appendices, the provisions of this contract shall control. 13. Pledge of revenues. The BORROWER agrees that the specific revenues to be pledged to repay the STATE shall include, but not be limited to, an assessment levied for that purpose as authorized by resolution of the BORROWER. Furthermore, BORROWER agrees that a. Revenues for this loan are to be kept separate. The BORROWER hereby pledges such revenues to repay the STATE loan, agrees that these revenues will be set aside and kept in a separate bank account, warrants that these revenues will not be used for any other purpose, and agrees to provide the STATE a perfected security interest such that the STATE has priority over all other competing claims for such secured revenues. b. Establish security interest in the revenues. The BORROWER agrees that in order to provide a security interest for the STATE irrevocably pledging such revenues, it will provide a Uniform Commercial Code security Agreement and Financing statement, such document completed and properly executed, incorporated herein as Appendix B. No monies shall be advanced prior to BORROWER providing this form. c. uee agreement renewal. The BORROWER will, within thirty (30l days prior to the end of the fourth year that this contract is in effect and every five (5) years thereafter, deliver to the STATE a fully and properly executed Continuation Statement (Form UCC-3) of the security interest (UCC security Agreement and Financing Statement) required by this contract. d. Levy charges and fees for repayment of the loan. The BORROWER shall, pursuant to its statutory authority, its articles of incorporation, and bY-laws, and as authorized by its resolution, annually seek from its sharehOlders sufficient assessment, and to take all other necessary actions consistent therewith to levy assessments sufficient to pay this contract loan as well as sufficient funds for adequate operation and maintenance, emergency repair services, obsolescence reserves, and debt reserves, in a timely manner and as required by the terms and conditions herein. Should the shareholders fail to set any such assessments, the BORROWER shall establish adequate assessments for the purpose of repaying its obligations under this contract pursuant to 91-42-104(2) 3A CR.S. (1986>' In addition, in the event the assessments levied by the BORROWER become insufficient to assure repayment to the STATE as required by the terms and conditions herein, then the BORROWER, upon written notice thereof from the STATE, shall immediately take all necessary action consistent with the statutes, its articles of incorporation, by-laws, and resolutions, including but not be limited to adjusting additional assessments to raise sufficient revenue to assure repayment of the loan to the STATE. 14. progress reports. The BORROWER shall, with the assistance of the CONSULTANT, prepare a progress report which contains a statement of the actual PROJECT construction costs expended for that month and shall forward said statement to the STATE. 15. Periodic inspections. The BORROWER shall permit a designated representative of the STATE to make periodic inspections of PROJECT construction, operations, and accounts. Any such inspections by the STATE are solely for the purpose of verifying compliance with the terms and conditions of the contract and shall not be construed nor interpreted as an approval of the actual design and/or construction of any element of the PROJECT. RAINBOW PARK WATER COMPANY Page 6 of 11 LOAN CONTRACT