C150087 Contract

• Contract/PO #: C150087
• Contractor Name: Cedar Mesa Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

calculate the amount of the interest that accrued prior to completion of the PRO�ECT and the
BoRROwER shall repay that amount to the CWCB either within ten (10) days after the date the
CWCB determines that the PRO�ECr has been substantially completed, or, at the CWCB's
discretion, said interest shall be deducted from the final disbursement of loan funds that the
CWCB makes to the
3. Return of U�used Loan Funds. Any loan funds disbursed but not expended for the PRO�ECr in
accordance with the terms of this Contract shall be remitted to the CWCB within 30 days of either
(1) completion of the PRO�ECr or (2) upon the determination by the CWCB that the PRO�ECT will
not be completed.
4. BORROWER�S AUthO�lty TO COI1t�aCt. Th@ BORROWER board of directors (and stockholders, if
required) have adopted resolutions, attached as Appendix 3 and incorporated herein, authorizing
the BoRROweR to perform in accordance with the terms of this contract.
5. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB th2 BORROWER
shall submit to the CWCB a letter from its attorney stating that it is the attorney's opinion that
a. the person signing for the BoRROwER was duly elected or appointed and has authority to sign
such documents on behalf of the BortROwER and to bind the BORROwER;
b. the BORROWER board of directors and/or stockholders have validly adopted resolutions
approving this contract;
c. there are no provisions in the BoRROwER's articles of incorporation or bylaws or any state or
local law that prevent this contract from binding the BoRROwER; and
d. the contract will be valid and binding against the BoRROwER if entered into by the CWCB.
6. Pledge Of Property. The BoRROwER hereby irrevocably pledges to the CWCB for purposes of
repayment of this loan (1) revenues from assessments levied for that purpose as authorized by
the BoRROwER's resolution(s) and (2) all of the BoRROwER'S rights to receive said assessment —
revenues, hereinafter collectively referred to as the "Pledged Property."
Segregation of Pledged Revenues. The BoRROweR hereby agrees to set aside and keep
the pledged revenues in an account separate from other BoRROwER revenues, and warranis
that it shall not use the pledged revenues for any other purpose.
Establish Security Interest. The BoRrzowER agrees that, to provide a security interest to the
CWCB in the Pledged Property so that the CWCB shall have priority over all other competing
claims for said property, it shall execute a Security Agreement, attached hereto as Appendix
4, and incorporated herein. The CWCB shall perfect its security interest in the BortROwER's
right to receive assessment revenues by fling a UCC-1 Form with the Colorado Secretary of
State.
c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority, articles of
incorporation and bylaws, the BoRROwER shall take all necessary actions consistent therewith
to levy assessments sufficient to pay this loan as required by the terms of this contract and the
Promissory Note. In the event the assessments tevied by the BoRROwER become insufficient
to assure such repayment to the CWCB, the BoRrtowER shall immediately take all necessary
action consistent with its statutory authority, its articles of incorporation and bylaws including,
Page 2 of 9 Cedar Mesa Ditch and Reservoir Loan Contract