C150081 Letter of Substaintial Completion

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PROMISSORY NOTE Date: August 1, 2001 Date of Completion J1l ~,.t...l.. I, 2 po:3 . 1. FOR VALUE RECEIVED, the City of Victor, acting by and through the City of Victor, Colorado Water and Wastewater Enterprise ("BORROWER") promises to. pay the State of Colorado Water Conservation Board ("STATE"), the principal sum of Six Hundred Thousand Dollars ($600,000) plus interest at the rate of three and three-fourths percent (3.75%) per annum for a term of twenty (20) years, pursuant to Loan Contract No, C150081 dated August 1, 2001 ("LOAN CONTRACT"). 2. Principal and interest shall be payable in equal installments of $43,177.26, with the first payment due and payable one year from the date that the state determines that the project is substantially complete, and annually thereafter until all principal, interest, and late charges, if any, have been paid in full, with all such principal, interest, and late charges, required to be paid within 20 years. 3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman Street, Room 721, Denver, Colorado 80203. 4. Ifthe STATE does not receive the annual payment within 15 calendar days of the due date, the State may impose a late charge in the amount of 5% of the annual payment 5. This Note may be prepaid in whole or in part at any time without premium or penalty, Any partial prepayment shall not postpone the due date of any subsequent payments or change the amount of such payments, 6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce the principal amount 7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that may become due hereunder. The security interests, evidenced by a Security Agreement of even date and amount, cover certain revenues and accounts of the BORROWER, The LOAN CONTRACT and Security Agreement grant additional rights to the STATE, including the right to accelerate the maturity of this Note in certain events, 8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement securing this Note occurs, the STATE may declare the entire outstanding principal balance of the Note, all accrued interest, and any outstanding late charges immediately due and payable, and the indebtedness shall bear interest at the rate of 7% per annum from the date of default The STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this Promissory Note. 9. . The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or secondarily liable for the payment of this Note or any portion Appendix 2 to Loan Contract C150081