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<br />,. <br /> <br />... <br /> <br />Discussion <br />In order for the 1,007 shares in the Excelsior Ditch to be pledged as collateral for the <br />AGUA loan, the Board would have to consent to the release of these shares as collateral <br />on the Excelsior Ditch loan. <br /> <br />If an additional $230,000 is loaned to the Excelsior Ditch, per the authorization in the <br />1997 Construction Fund bill, the total amount of the Excelsior loan would be $330,000 <br />secured by the remaining 1,876 shares. Assuming that that the market value per share is <br />-$645, as suggested bY-the asking price for the 1,007 shares, the total value of the <br />remaining collateral on the Excelsior loan would be about $1.2 million. (As suggested in <br />my September 12 memo, a condition of final approval on the AGUA loan request would <br />be an appraisal for the 1,007 shares). <br /> <br />Recommendation <br />Staff recommends that the Board authorize the release of the 1,007 shares of stock in the <br />Excelsior Irrigation Company owned by C.R. (Dick) Evans in Certificate No.5 as <br />collateral on the existing Construction Fund loan (Loan Contract #CI53748) to the <br />Excelsior Irrigation Company for use as collateral on a loan which the Board may <br />authorize to the Arkansas Groundwater Users Association. <br /> <br />Staff further recommends that final approval of the preceding release of collateral be <br />conditioned upon the submittal of an appraisal, acceptable to the Director of the CWCB, <br />of the Excelsior Ditch water rights so as to provide a firm indication that the remaining <br />1,876 shares will be adequate in value to secure a loan not to exceed $330,000 to the <br />Excelsior Irrigation Company. <br /> <br />Cc: Dick Evans, Excelsior Irrigating Co. <br />Board of Directors, AGUA <br />Linda Bassi, AGO <br />Mark McLean, Rocky Mountain Consultants <br /> <br />2 <br /> <br />. <br /> <br />" <br /> <br />e <br />