C153771 Contract Communication - Laserfiche WebLink

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Linda 1. Bassi, Esq. September 12, 1997 Page 9 "PROJECT COMPLETION," there will be an obligation to make interest only payments of 2% per annum on the $825,000 disbursed. These interest payments should be prorated for times less than one year. * Paragraph 4 should be revised to anticipate the possibility that HCwUA may receive grant funds and use these to reduce the amount of the loan, as discussed above. Amortization Schedule - Appendix 3 * The Amortization Schedule provided with the loan documents is incorrect. The loan funds disbursed should accrue interest at the rate of 2% per annum until the sixth year following PROJECT COMPLETION, at which time the interest rate should be adjusted to allow for an effective interest rate of3% over the life of the loan. Please see the two Amortization Schedules attached hereto which we believe correctly achieve the above-stated requirements. (We believe that your Amortization Schedule accrues interest at 3% per annum during the first five years of the loan, while reducing the payment amounts, which yields a larger principal balance to accrue interest in years 6-40.) Revision Letter - Appendix 4 * This document should refer to HCWUA as the "Borrower" rather than as the "Contractor. " Assignment of Certificate of Deposit - Appendix 5 * This document currently is misnumbered as Appendix 6. * This document should provide that interest generated by the Certificate of Deposit will be released to HCWUA. Deed of Trust - Appendix 6 * The State should consider which Public Trustee should be involved with this instrument. We believe that the Box Springs Water Rights historically have been diverted and used in Crowley County. Under the Settlement Agreement, the point of diversion for the water rights is not changed, even though the HCWUA members' wells are located in El Paso, Elbert, and Lincoln counties.