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<br />.' <br /> <br />TOWN OF NEW CASTLE, COLORADO <br />ORDINANCE NO. 2004-9 <br /> <br />An Ordinance of the , Town of New Castle, Colorado, Authorizing the <br />Execution and Delivery of a Loan Contract, Dated as of December IS, 2003, <br />between the State of Colorado Department of Natural Resources, Colorado <br />Water Conservation Board and the Town of New Castle, Colorado, Acting by <br />and through the Town of New Castle, Colorado, Water and Sewer <br />Enterprise. <br /> <br />WHEREAS, the Town of New Castle, Colorado (the "Town"), has established <br />the Town of New Castle, Colorado, Wat~r and Sewer Enterprise (the "Enterprise") <br />as an enterprise of the Town within the meaning of art. X, 9 20 of the Colorado <br />Constitution; and .' <br /> <br />WHEREAS, pursuant to Ordinance No. 463, the Town has authorized the <br />Enterprise. to have and exercise the following powers: to hold meetings <br />concurrently with regular or spedal meetings of the Town Council, to adopt <br />resolutions in the manner in which Town resolutions may be adopted, to pledge any <br />revenues of the water supply, treatment, storage and distribution system of the <br />Town (the "System") to the payment of any debt incurred to Improve the system <br />and to pay such debt, to enter into contracts relating to the System In the manner <br />in which Town contracts may be entered into, to make representations, warranties <br />and covenants on behalf of the Town and to bind the Town to perform any <br />obligation relating to the System other than any multiple-fiscal year direct or <br />indirect debt or other financial Obligation of the Town without adequate present <br />cash reserves pledged irrevocably and held for payments in all future years; and <br /> <br />WHEREAS, the Town and Enterprise made an application to the State of <br />Colorado Department of Natural Resources, Colorado Water Conservation Board <br />(the "CWCB") for a loan in the amount of $707,000.00 to finance the cost of <br />acquiring, constructing and installing improvements to the System; and <br /> <br />WHEREAS, the CWCB has approved said application; and <br /> <br />WHEREAS, there has been filed with the Secretary of the Enterprise the form <br />of a loan Contract, dated as of June 1, 2004 (the "loan Contract"), between the <br />CWCB and the Town, acting by and through the Enterprise; and <br /> <br />WHEREAS, the loan Contract requires the Enterprise to execute a Promissory <br />Note in the amount of $707,000 and a Security Agreement pledging revenues of <br />the Enterprise to secure the Promissory Note for the benefit of the CWCB (the "loan <br />Documents"). <br /> <br />. NOW THEREFORE, BE IT ORDAINED BY THE TOWN OF NEW CASTLE, <br />COLORADO: <br /> <br />T: \Ordlnances\councll\200409 <br /> <br />Page 1 of 2 <br />