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<br />4j all of the BORROWER'S right, title and interest in and ro that certain warer lease dared September 7,
<br />1974, from Richard L. Beaghler, Mary Jane Gordon and A. J. Beaghler to R. J. Seyfried and Anne
<br />Seyfried, conveyed to the GRANTOR by an Assignment of Water Lease recorded in Book 1527,
<br />Receprion No. 2471505, of the records of rhe Clerk and Recorder of Weld Counry, Colorado, covering
<br />rhe production of ground warer and certain rights incidenr thereto beneath a rracr of land siruate in
<br />Weld Counry, Colorado, described as follows: the South Half of the North Half IS}/, N}/,j and the
<br />Southeasr Quarter ISE!4j of Section 5, Township 3 North, Range 61 West of the 6th P.M., and
<br />containing 320 acres more or less, together wirh all of the BORROWER'S right, title and interest, if any,
<br />in and to Well Permit Nos. 18338-FP and 31655-FP.
<br />
<br />7. Collateral'during repayment. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage,
<br />pledge, encumber, or otherwise dispose of any collateral for this loan, including the PROJECT or any portion
<br />thereof or the revenues pledged to repay the loan herein, so long as any of the principal and any accrued
<br />interest..required by the Promissory Note Provisions of the contract remain unpaid without the prior written
<br />concurrence of the STATE.
<br />
<br />8. 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, may:
<br />
<br />a. declare the entire principal amount and accrued interest then outstanding immediately due and
<br />payable;
<br />
<br />b. incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT facilities
<br />herein described and such expenses as may be necessary to cure the cause of default, which
<br />expenditures shall be added to the principal of the loan amount;
<br />
<br />c. take possession of the PROJECT facilities, repair, maintain, and operate or lease them;
<br />
<br />d. act upon the deed of trust, UCC DOCUMENT, and promissory note;
<br />
<br />e. take 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 S,ATE 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 ensure
<br />compliance with provisions of this contract and the laws and regulations under which this contract is executed.
<br />The STATE'S exercise of any or all of the remedies described herein shall not relieve the BORROWER of any of
<br />its duties and obligations under this contract.
<br />
<br />9. In event of a conflict. In the event of conflict between the terms of this contract and conditions as set
<br />forth in any of the appendices, the provisions of this contract shall control.
<br />
<br />10. Pledge of revenues. The BORROWER agrees that the specific revenues to be used to repay the STATE
<br />shall come from the BORROWER'S WATER USER FEES, as authorized by resolution of the BORROWER, and any other
<br />funds legally available to BORROWER to repay the STATE. Furthermore, BORROWER agrees that
<br />
<br />a. Revenues to repay this loan. The BORROWER hereby pledges such revenues to repay the ST ATE
<br />loan, agrees that these revenues shall be set aside and kept in an account separate from other
<br />BORROWER revenues, warrants that these revenues shall not be used for any other purpose, and agrees
<br />to provide the STATE a perfected security interest in these revenues such that the STATE has priority
<br />over all other competing claims for such secured revenues.
<br />
<br />b. Establish security interest in the revenues. The BORROWER agrees, that in order to provide a
<br />security interest for the STATE irrevocably pledging such revenues, it shall provide a completed and
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<br />Morgan County Quality Water District
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<br />Loan Contract
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