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<br />c. The BORROWER warrants that it has not employed or retained any company or person, other than" <br />a bona fide employee working solely for the E:!ORROWER, to solicit or secure this contract and has <br />not paid or agreed to pay any person, company, corporation, individual, or firm, other than a <br />bona fide employee, any fee, commission, percentage, gift, or other consideration contingent <br />upon or resulting from the award or the makiFlg of this contract. <br /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this contract is <br />not encumbered by any other deeds of trust, security agreements or assignments to any party <br />other than the STATE or in any other manner. <br /> <br />8. Collateral. Part of the security provided for this loan shall be an undivided one hundred percent <br />(100%) interest in 1007 shares of the Excelsior Irrigating Company, hereinafter referred to as the <br />Collateral. <br /> <br />To protect the STATE'S and the BORROWER'S interests in the Collateral, the BORROWER shall meet the <br />following conditions: <br /> <br />a. The BORROWER shall convey a security interest to the STATE in the shares acquired by executing <br />a Deed of Trust and a Security Agreement eFlcumbering all of the Shares purchased in the forms <br />attached hereto as Appendix 4 and Appenclix 5 and incorporated herein. The BORROWER shall <br />record the Deed of Trust contemporaneously with the BORROWER'S deed as it acquires the <br />shares, and shall execute and deliver to the STATE the Security Agreement and Stock Assignment <br />upon closing on the purchase of the Shares. <br /> <br />b. The BORROWER shall have the shares issued in both the BORROWER'S and the CWCB's names, <br />and shall give physical custody of the stock certificate(s) to the CWCB, which shall deposit the <br />certificate(s) at the State Treasurer's Office fClr safekeeping. <br /> <br />c. The BORROWER shall retaIn both the responsibility for paying assessments on and the privilege of <br />voting said shares. <br /> <br />d. The BORROWER shall sign a Stock Assignment in the form attached hereto as Appendix 6 and <br />incorporated herein, to become effective solely in the event of a default by the BORROWER in the <br />payments required under this contract or in the performance of any covenant or agreement <br />contained herein. <br /> <br />9. Pledge Of Property. The BORROWER hereby irrevocably pledges to the State for purposes of <br />repayment of this loan revenues from membership fees and from assessments levied for that <br />purpose as authorized by the BORROWER'S resolution(s) and all of the BORROWER'S rights to receive <br />said revenues from its members (hereinafter c:ollectively referred to as the "pledged property"). <br />Furthermore, BORROWER agrees that <br /> <br />a. Revenues For This Loan Are To Be Kept Separate. The BORROWER shall set aside and keep <br />the pledged revenues in an account separate from other BORROWER revenues, and warrants <br />that it shall not use these revenues for any other purpose. <br /> <br />b. Establish Security Interest. To provide a security interest for the STATE in the pledged <br />property so that the STATE shall have priority over all other competing claims for said <br />property, the BORROWER shall execute a Security Agreement, attached hereto as Appendix 7 <br />and incorporated herein, and an Assignm~nt of Deposit Account as Security, attached hereto <br />as Appendix 8 and incorporated herein. ihe BORROWER acknowledges that the STATE shall <br />perfect its security interest in the BORROWER'S right to receive membership fee and <br /> <br />Arkansas Groundwater Users Association <br /> <br />Pag~ 4 of 10 <br /> <br />Loan Contract <br />