Water Lien Agreement

WATER LIEN AGREEMENT

This Water Lien Agreement (the Agreement) is made and entered into as of Date: by and between Water Provider Name: , an entity of type Individual Corporation Limited Liability Company, and Property Owner Name: , whose principal mailing address is .

RECITALS

WHEREAS, Water Provider supplies potable water service, meter service, and related municipal water connections and desires security for payment of charges, fees, and costs associated with service to the Property described below; and

WHEREAS, Property Owner is the owner or contractual obligor for the real property and consents to the recording and enforcement of a lien against the Property to secure past due, present and future charges for water service, as set forth in this Agreement; and

WHEREAS, the parties desire to set forth the terms under which Water Provider may impose, perfect and enforce a lien on the Property for unpaid water charges and associated costs.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Charges" means all water usage charges, meter fees, reconnection fees, service charges, administrative fees, penalties, interest, collection costs, attorney fees, recording fees and other amounts lawfully billed by Water Provider in connection with provision of water service to the Property.

1.2 "Property" means the real property subject to this Agreement, legally described as:

2. GRANT OF LIEN

2.1 Property Owner hereby grants and conveys to Water Provider a continuing security interest and lien (the Lien) against the Property to secure payment of all Charges that become due and payable in respect of water service supplied to the Property from the Effective Date of this Agreement until final satisfaction of secured obligations.

2.2 The Lien secures both (a) existing Charges identified as of the date hereof in the amount of and (b) all future Charges arising during the term of the Lien.

3. AMOUNTS SECURED; INTEREST; FEES

3.1 Interest, late fees and any collection costs described above shall accrue and be collectible as part of the secured obligation and may be included in the amount for which the Lien is enforced.

4. PERFECTION; RECORDING; PRIORITY

4.1 Property Owner authorizes Water Provider to record, file or otherwise perfect the Lien in the appropriate public records to protect the security interest created by this Agreement. Water Provider's recording, filing and perfection of the Lien shall be privileged and Property Owner shall cooperate in executing documents reasonably required to effect perfection.

4.2 The parties agree that the Lien will have such priority as is afforded by applicable law. Water Provider shall have the right to preserve and enforce any priority by appropriate action, including but not limited to seeking declaratory relief, injunctive relief, or foreclosing the Lien consistent with controlling law.

5. ENFORCEMENT; REMEDIES

5.1 Upon default in payment of Charges after any applicable notice and cure period required by law or policy, Water Provider may pursue any remedy available at law or in equity, including termination of service, acceleration, foreclosure of the Lien, sale of the Property under applicable procedures, and recovery of costs of collection, including reasonable attorney fees.

5.2 The exercise of any remedy by Water Provider shall not preclude pursuit of other available remedies and shall not constitute an election preventing Water Provider from seeking deficiency judgments or other relief.

6. REPRESENTATIONS AND WARRANTIES

6.1 Property Owner represents and warrants that Property Owner is the owner or has authority to encumber the Property and that no prior authorization is required to grant the Lien executed hereunder, except as disclosed in writing to Water Provider. Property Owner further warrants that no transfer or other action has been taken that materially impairs Water Provider's ability to perfect or enforce the Lien.

6.2 Water Provider represents and warrants that the Charges secured by this Agreement arise from bona fide water services and that Water Provider will apply payments first as required by its billing policies and applicable law.

7. NOTICES

7.1 All notices and communications required or permitted under this Agreement shall be in writing and delivered personally, by certified mail, return receipt requested, or by nationally recognized overnight courier, addressed as follows (or to such other address as a party may designate by notice in accordance with this Section).

8. PAYMENT; ACCOUNTING; RECONCILIATION

8.1 Water Provider shall provide Property Owner with periodic accounting of Charges, and upon reasonable request shall provide an itemized statement of amounts claimed secured by the Lien. Property Owner shall have the right to dispute the amount claimed in good faith by giving written notice to Water Provider, and the parties shall attempt to resolve disputes in accordance with Section 11 (Amendment; Waiver).

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of law principles.

10. ENTIRE AGREEMENT; SEVERABILITY

10.1 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written.

10.2 If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

11. AMENDMENTS; WAIVER; COUNTERPARTS

11.1 This Agreement may be amended only by a written instrument signed by both parties. No course of dealing, failure to exercise any right, or delay shall operate as a waiver of any right.

11.2 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

12. MISCELLANEOUS

12.1 Costs of Enforcement. Property Owner shall be liable for reasonable costs incurred by Water Provider in enforcing this Agreement, including recording fees, title searches, collection costs and attorneys' fees to the extent permitted by law.

Property Owner hereby authorizes Water Provider to record this Agreement or a memorandum of this Agreement in the public records to evidence and perfect the Lien: Yes No

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