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<br />over all other competing claims for said property, it shall execute a Security
<br />Agreement, attached hereto as Appendix 4, and incorporated herein, The CWCB
<br />shall perfect its security interest in the BORROWER'S right to receive assessment
<br />revenues by filing a UCC-1 Form with the Colorado Secretary of State,
<br />
<br />c. Assessments For Repayment Of The Loan. Pursuant to its statutory authority,
<br />articles of incorporation and bylaws, the BORROWER shall take all necessary actions
<br />,consistent therewith to levy assessments sufficient to pay this loan as required by the
<br />terms of this contract and the Promissory Note, In the event the assessments levied
<br />by the BORROWER become insufficient to assure such repayment to the CWCB, the
<br />BORROWER shall immediately take all necessary action consistent with its statutory
<br />authority, its articles of incorporation and bylaws including, but not limited to, levying
<br />additional assessments to raise sufficient revenue to assure repayment of this loan,
<br />
<br />d, Assessments For Operations, Maintenance And Reserves. Pursuant to its
<br />statutory authority, articles of incorporation and bylaws, the BORROWER shall levy
<br />assessments in sufficient amounts to provide funds for adequate operation and
<br />maintenance, emergency repair services, and obsolescence and debt service
<br />reserves,
<br />
<br />e, Debt Service Reserve Account. To establish and maintain the debt service reserve
<br />account, the BORROWER shall deposit an amount equal to one-tenth of an annual
<br />payment into its debt service reserve fund on the due date of its first annual loan
<br />payment and annually thereafter for the first ten years of this loan. In the event that
<br />the BORROWER applies funds from this account to repayment of the loan, the
<br />BORROWER shall replenish the account within ninety (90) days of withdrawal of the
<br />funds,
<br />
<br />7, Collateral. The collateral for this loan is described in Section 4 (Collateral) of the Project
<br />Summary, The BORROWER shall not sell, convey, assign, grant, transfer, mortgage,
<br />pledge, encumber, or otherwise dispose of the collateral for this loan, iru:;luding the
<br />Pledged Property, so long as any of the principal, accrued interest, and late charges, if
<br />any, on this loan remain unpaid, without the prior written concurrence of the CWCB, In
<br />the event of any such sale, transfer or encumbrance without the CWCB's written
<br />concurrence, the CWCB may at any time thereafter declare all outstanding principal,
<br />interest, and late charges, if any, on this loan immediately due and payable,
<br />
<br />8, Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
<br />principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br />Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
<br />and interest in and to the collateral and the property pledged to repay this loan,
<br />
<br />9, Warranties.
<br />
<br />a, The BORROWER warrants that, by accepting the loan money under this contract and
<br />by its representations herein, the BORROWER shall be estopped from asserting for any
<br />reason that it is not authorized or obligated to repay the loan to the CWCB as
<br />required by this contract
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<br />Loan Contract
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