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<br />onOH~ <br /> <br />ALLOTMENT POLICY <br /> <br />. Class 0 <br />Allotment Contract Policy Change <br /> <br />The NCWCD Board of Directors <br />recently adopted a new policy <br />governing the transfer of Class 0 <br />(agricultural) allotment contracts. <br />This came after a lengthy public <br />hearing process that examined <br />NCWCD procedures lor requinng <br />notification of lienholders before <br />apprOVing such transfers. <br />Class 0 contracts are Irrigation <br /> <br />Identify lienholders under the Uniform <br />CommerCial Code and was therefore <br />Incomplete. The new policy attempts <br />to clearly identify a procedure <br />whereby lienholders can be assured <br />that their collateral Interest is <br />protected. <br /> <br />The new policy did not come about <br />easily. FollOWing the first public <br /> <br />, . - ...... , <br />- l . ..', .11- - -,. <br />, - <br /> <br />~ <br /> <br /> <br />. <br /> <br />Center PIVot In western Weld Counry <br /> <br />contracts which are attached to a <br />specifiC tract of land for Irrigation <br />purposes only. The District's two <br />other classes 01 service Class Band <br />Class C are not affected by this <br />change <br /> <br />Under the old policy the Dlstnct <br />required that apphcallOns for transfer <br />be signed by all record lienholders <br />mvolved in a change. These were <br />Identified by an Ownership and <br />Encumbrance Report whIch gave a <br />. partial indication of any record <br />lienholders It did not however. <br /> <br />hearing m April. the Board contmued <br />the hearing three additional times as <br />staff. Class D allottees, lender <br />representatives. and real estate <br />agents grappled With the best <br />solulion to the problem. One at the <br />major concerns was the development <br />of a procedure which would in no <br />way Jeopardize the use of C.ST <br />water allotments as collateral In the <br />fmancial operalion of a farm. <br /> <br />Under the new policy the District will <br />not reqUIre hen record searches. <br />lienholders who Wish to protect thelf <br /> <br />mterest will be reqUired to provide <br />the District With certified notice that <br />they have a lien against a CoST <br />allotment They will then be notified <br />of any lmpendmg transfer mvolving <br />that water and the Soard will require <br />thai the registered lienholders <br />Signature be obtamed before a <br />transfer IS approved. If no nOllce and <br />registration has been provided then <br />the water Will be transferred by the <br />record owners signature only. <br /> <br />The District has a form availab!~ for <br />lienholders to give notice of such <br />liens. The District IS requesting ali <br />lienholders and other interested <br />parties to call the office If you have <br />further Questions regarding this new <br />policy. <br /> <br />The policy will go into effect October <br />1. 1991 givmg all lienholders time to <br />check their records and give the <br />District notice If necessary. ThiS will <br />also allow the District time to nOllly <br />allottees. revise forms. and enter the <br />data into District records. <br /> <br />C.BT Ownership <br />September 1. 1990 <br />AF Units <br />88,393 <br />28,252 <br />10,953 <br />5.768 <br />133,366 <br /> <br />Class <br />MUniCipal (Class B) <br />Domestic (Class C) <br />fndustrial (Class C) <br />Multipurpose (Class C) <br />TotalM& I <br /> <br />43% <br /> <br />ImgatlOn (Class 0) <br />Iff/gat/on (Class C) <br />State Land (Class C) <br />Total Agriculture <br />57% <br /> <br />110.748 <br />65,511 <br />375 <br />176.634 <br /> <br />WATERNEWS FALL 1990 <br /> <br />9 <br />