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<br />Promissory Note <br /> <br />Date June 20. 2000 Date of Substantial Completion <br /> <br />1. For Value Received, the City of Loveland, Colorado, Water Enterprise ("BORROWER") promises to pay the State <br />of Colorado Water Conservation Board ("STATE"), the principal sum of Five Million Dollars ($5,000,000) plus <br />interest at the rate of 4.45% per annum for a term of ten (10) years, pursuant to Loan Contract No. C150005 <br />("LOAN CONTRACT"). <br /> <br />2. The first payment of Six Hundred Thirty Thousand One Hundred Eighty Six and 47/100 Dollars ($630,186.47) <br />shall be due one year from the date that the State determines that the project is substantially complete, and <br />annually thereafter until the entire principal sum, all accrued interest, and all late charges, if any, shall have been <br />paid in full. <br /> <br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman <br />Street, Room 721, Denver, Colorado 80203. <br /> <br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may impose <br />a late charge in the amount of 5% of the annual payment. <br /> <br />5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment <br />shall not postpone the due date of any subsequent payments or change the amount of such payments. <br /> <br />6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce the <br />principal amount. <br /> <br />7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN <br />CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that may <br />become due hereunder. The security interests, evidenced by a Security Agreement, cover certain revenues. <br />The LOAN CONTRACT and Security Agreement grant additional rights to the STATE. <br /> <br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement <br />securing this Note occurs, the indebtedness shall bear interest at the rate of 7% per annum from the date of <br />default. The STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure <br />within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes <br />of this Promissory Note. <br /> <br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or <br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest <br />thereon is not paid when due or suit is brought, then it shall pay all reasonable costs of collection, including <br />reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of collection shall include <br />all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for <br />attendance at meetings of creditors' committees or other committees. <br /> <br />10. This Not~ \~~~I:Illi/~verned in all respects by the laws of the State of Colorado. <br />", ~ \. IV7J,,, '"'' <br />", c.. \,: .......... '-0' ...... <br />.. ~.... .. .. ~ ~ <br />g.lio. ... ...~~ BORROWER: City of Loveland, Colorado, Water Enterprise <br />--~~. .~-- <br />: ~-S E A L ) \ ~ i <br />= : SEAL :0: <br />:; \ : = <br />~ e. : :: <br />., ~.. . .... <br />~~. .1..._.... <br />~ ~~. ..~$ <br />,,-7,:1'0-_ .. '"~.... <br />;jf~ (;; II......... a~~~ <br />Attest -""", ENTt'-1\\""\; <br />IIIIInn"'\\ <br /> <br />BY~J ('~P7lZ~ <br /> <br />Secretary <br /> <br /> <br />cct\\r~ <br />Kathleen R. Gillila <br /> <br /> <br />Appendix 2 to Loan Contract No. C150005 <br />