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<br />conserved to the greatest extent possible in order to be able to accommodate any other <br />emergency loan requests that may be submitted in the next few months. We will therefore <br />recommend that CWCB funding be limited to 50-percent' of the estimated cost for this proposed <br />project. <br /> <br />Recommendation <br /> <br />Staff recommends a loan from the Emergency Infrastructure Repair Account of the Construction <br />Fund to the Model Land and Irrigation Company in the amount of$335,000 (or for 50 percent of <br />the total project costs, whichever is less) for 30 years at the 1999 agricultural lending rate of3.75 <br />percent for repairs to the Model Dam and Reservoir as described above. Staff further <br />recommends the following conditions for loan approval by the Board: <br /> <br />1. The applicant will complete all required feasibility investigations and analyses. <br />Funding will be contingent upon a final determination of feasibility by the CWCB <br />staff. <br /> <br />2. The applicant will provide collateral that is equivalent in value to the principal <br />amount of the loan and will provide any analyses and appraisals of the proposed <br />collateral as may be required to allow the Director of the CWCB to make a final <br />determination as to the adequacy of collateral. <br /> <br />3. Any collateral pledged for the loan shall be free of liens and encumbrances. <br /> <br />4. The CWCB loan shall have parity status with any existing debt of the Company with <br />respect to a pledge of revenues. <br /> <br />5. The applicant Will commit to comply with the terms of the Division 2 Engineer's <br />administrative order as generally described in the attached letter of May 21, 1999. <br />The applicant must be able to demonstrate the intent and ability to comply with the <br />order before any funds are disbursed from the Emergency Infrastructure Repair <br />Account. <br /> <br />6. The applicant will continue to pursue any other possible sources of funding for the <br />project in order to minimize, if possible, the use of funds from the Emergency <br />Infrastructure Repair Account. <br /> <br />7. Completion and long-term financing of the project, including compliance with the <br />Division 2 Engineer's administrative order, shall not be dependent upon further <br />funding by the CWCB. <br /> <br />Attachments <br /> <br />4 <br /> <br />'~ <br /> <br />t ,.:;. <br /> <br />c, <br />o, <br /> <br />'. <br /> <br />-" <br /> <br />~ <br />~:y <br /> <br />(":""J <br />> " <br />';1)4 <br />j <br /> <br />( " <br />~b <br />