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<br />WHEREAS, the Town's obligations under the Loan Documents shall not constitute a <br />debt or indebtedness of the Town within the meaning of Article XI, Section 6 of the Colorado <br />Constitution or any statutory provision or limitation, nor shall it be considered or held to be a <br />general obligation of the Town but is a special limited obligation payable solely from the <br />revenues described in the Loan Documents; and <br /> <br />WHEREAS, the Board desires to approve the form of the Loan Documents and other <br />documents referenced therein, authorize the execution thereof, and authorize other actions <br />necessary to perform the obligations orp Loan Documents; and <br /> <br />WHEREAS, none of th membertlL ard have any financial interest or other <br />potential conflicting interests i ct.~' with the a.u. thorization or execution of the Loan <br />Documents or the use of the pro th1l!fO'(J: " <br /> <br />NOW THEREFORE, BE IT ORDAINED -LTHE BOARD OF TRUSTEES OF <br />THE TOWN OF LYONS, BOULDER COUNTY, COLORADO, THAT: <br /> <br />Section 1. The Board of Trustees hereby approves the Loan Documents and thereby <br />agrees to comply with the terms and conditions of the Loan Documents. Such loan shall be in <br />the principal amount not to exceed $280,500.00, for a term of not more than twenty (20) years, <br />and with an interest rate not to exceed five percent (5%) per annum on all funds borrowed by <br />the Town under the Loan Documents. The first installment shall be due and payable one year <br />after the CWCB determines that the project described in the Loan Agreement is substantially <br />complete. The Mayor, or in the Mayor's absence the Mayor Pro Tern, is authorized to execute <br />the Loan Documents and the Town Clerk is authorized to attest such execution. <br /> <br />Section 2. The Town shall fix and collect water charges and fees sufficient to pay the <br />loan evidenced by the Loan Documents and shall establish a reserve debt service fund by making <br />an annual deposit equivalent to one-tenth of an annual payment every year for ten (10) years and <br />shall replenish the fund anytime the fund is depleted. <br /> <br />Section 3. The Town shall set aside sufficient revenues each year to pay the annual <br />installment in a special account, separate and apart from other revenues of the Town. <br /> <br />Section 4. The Mayor, Town Finance Director, Town Attorney, and Town Clerk are <br />hereby authorized to cooperate with a bank, savings and loan, or other financial institution which <br />provides certificates of deposit and to prepare and execute documentation and make such deposit <br />necessary to obtain a certificate of deposit in the amount of $22,508.05 in the name of the Town <br />of Lyons, Colorado, and to draft and execute documentation necessary to assign such certificate <br />of deposit to the Colorado Water Conservation Board as security and collateral for the loan. <br /> <br />Section 5. This Ordinance shall be irrepealable and irrevocable beginning from the <br />effective date of the Loan Agreement and during the term of the Loan Agreement. <br /> <br />RCW\S3976\163338_1 <br /> <br />2 <br />