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10. The STATE understands that the repayment of the funds loaned, including interest thereon, will come from revenues pledged for the repayment thereof from rates, fees, and other charges for water sold BORROWER and that this obligation does not constitute a debt of the BORROWER OR TOWN Within the meaning of any constitutional or statutory limitations; and 11. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon mutually agreeable terms and conditions, subject to the availability of funding for that purpose. NOW THEREFORE, it is hereby agreed that: 1. Preparation of the feasibility report. The BORROWER ahall have a feasibility report prepared on the PROJECT. The STATE has approved a Plan of Study for the PROJECT Feasibility Report prepared by BORROWER'S consulting engineer, WestWater Engineering, hereinafter referred to as CONSULTANT. The Plan of Study is attached hereto as APPENDIX Band thereby made a part of this contract. 2. Time for completion. Three (3) copies of the final report of the feasibility study prepared in compliance with the above referenced CONSULTANT'S plan of study shall be furnished to the STATE no later than one (1) year after the date of this contract, unless such time is extended by mutual agreement of the parties hereto in writing. 3. The STATE will loan the money to do the feasibility report. The STATE shall loan the BORROWER the amount of Seven Thousand Five Hundred Dollars ($7,500) to pay for part of the cost of the services of the BORROWER'S CONSULTANT to prepare the final report of the feasibility study. Said amount s e disbursed in the manner following: hree Thousand Seven Hundred Fifty Dollars uest from the BORROWER. Said payment will a. Payment of first 50%. The payment of the , ($3,750), will be made by the STATE to the"" upon ':tte be made within thirty (30) days after receipt ~ uest teTE. b. Payment of remaining 50%. The rema~lnin ~'ent (50%), Three Thousand Seven Hundred Fifty Dollars ($3,750). will be made to the BORROWER wit . V(~dayS following receipt and acceptance by the STATE of the final written report specified in paragraph 2 t' contract. 4. Authority to contract. Pursuant to their statutory authority, the TOWN'S board of trustees and the BORROWER'S commission shall adopt a joint resolution, which is irrepealable until the loan is fully discharged, authorizing the BORROWER to: a. authorize this loan. and b. enter into and execute this contract for this loan which is for payment of a portion of the cost of a feasibility study to evaluate alternatives for a raw water project, and to pay the indebtedness, and c. make and levy assessment(s) sufficient to payoff this contract loan pursuant to its terms, and d. place sufficient monies collected from water rates, fees and other charges each year in a separate account, apart from other revenues of the BORROWER to assure repayment of this loan to the STATE, and e. sign a security interest in such assessment revenues in favor of the STATE to secure the repayment of this loan. Such resolution is attached hereto as APPENDIX C. 5. Promissory note provisions. The BORROWER and the TOWN understand that this contract is also a promissory note for the repayment of funds loaned by the STATE to the BORROWER according to the terms set forth herein. a. BORROWER to repay principal plus interest. In consideration of the STATE loaning the BORROWER the funds to help pay for the cost of preparing the feasibility study report, the BORROWER shall repay to the STATE the entire principal amount borrowed under this contract, plus interest at two percent (2%) per annum on each loan advance disbursed to the BORROWER, starting from the date of advancement of funds by the STATE, regardless of whether the PROJECT is implemented or not. TOWN OF NORWOOD & NORWOOD WATER COMMISSION Page 2 of B Pages FEASIBILITY REPORT CONTRACT