PROJC01736 ‎(3)‎

• Contract/PO #: C153800
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Loan Projects - Doc Type: Contract Documents

d. To make annual payments in accordance with the promissory note, and

e. To make annual deposits to a debt service reserve fund in accordance with the
Pledge of Property Provisions of this contract, and

f. To obtain a certificate of deposit to serve as collateral in the amount of $3,000 as
security for the loan, and execute an assignment of certificate of deposit as
described in the Collateral Provisions of this contract, and

g. To execute a Security Agreement and an Assignment of Deposit Account as
Security to secure the revenues pledged herein in accordance with the Pledge of
Property Provisions of this contract.

Said resolution is attached hereto as Appendix 8 and incorporated herein.

5, Attorney's Opinion Letter. Prior to the execution of this contract by the STATE, the
BORROWER shall submit to the STATE a letter from its attorney stating that it is the
attorney's opinion that the person signing for the BORROWER was duly elected or
appointed and has authority to sign such documents on behalf of the BORROWER and
to bind the BORROWER; that the BORROWER'S' areholders and board of directors have
validly adopted resolutions approvin this t; at there are no provisions in the
BORROWER'S articles of incorporat[o -Ia tate or local law that prevent
this contract from binding the B :R:~d tIi e contract will be valid and
binding against the BORROWER if entere - iITf(fJ1n"~..TATE.

6. Promissory Note Provis'ions. Jhe Prori1iS~~ setting forth the - t~rms of
repayment of this loan in the amoUQt gf $25,000 at a~erest rate of 4% per annum
for a term of 10 years and evidencmgthls -oebt is attached as Appendix C and
incorporated herein.

a. Revision Of Promissory Note. In the event the Borrower does not use all of the
loan funds for the STUDY, the Promissory Note may be adjusted in accordance with
the Changes Provisions of this contract.

b. Interest During Study Period. As the loan funds are disbursed by the STATE to
the BORROWER during the study period, interest shall accrue at the rate of 4%. The
amount of the interest accrued during the study period shall be calculated by the
STATE and the BORROWER shall repay that amount to the STATE either within ten
(10) days after the date the STATE accepts the completed Feasibility Study, or, at
the STATE'S discretion, the amount shall be deducted from the final disbursement
of loan funds that the STATE makes to the BORROWER.

7. Changes. The STATE may decrease the amount of the loan under this contract or
extend the time for completion of the STUDY through a REVISION LETTER, approved by
the State Controller or his designee, in the form attached hereto as Appendix D. The
REVISION LETTER shall not be valid until approved by the State Controller or such
assistant as he may designate. Upon proper execution and approval, the REVISION
LETTER shall become an amendment to this contract and, except for the Special
Provisions of the contract, the REVISION LETTER shall supersede the contract in the
event of a conflict between the two. The parties understand and agree that the

Feasibility Report Loan Contract

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