C150040 Letter of Susbtaintial Completion

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~ ) 1 Promissory Note Date ~-L( ,.. ,2000 Date of Completion 5ebl-~~be,. - / , Zoo / ~ , 1. FOR VALUE RECEIVED, Otero Ditch Company ("BORROWER") promises to pay the State' of Colorado Water Conservation Board ("STATE"), the principal sum of One Hundred Fifty-Five Thousand Dollars ($155,000) plus interest at the rate of four percent (4%) per annum for a term of , thirty (30) years, pursuant to Loan Contract No. C150040 ("LOAN CONTRACT"). 2. Principal and interest shall be payable in equal installments of $8,963.67, with the first payment due and pqyable one year from the date that the State determines that,the project is substantially complete, and annually thereafter until all principal, interest, andlC?te charges, if any, have b~en paid in full, with all such principal, interest and I,ate chargesJ~qLJired to be'paid within thirty years. ' 3. Payments shall be made payable t6 the Colorado Water Conservation Boar,q anp ~ailedto 1313 Sherman Street, Room 721, Denver, Colorado 80203. ' 4. If the STATE does not receive the annual payment within 15 calendar days 'O(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 STAT~ to secure the prompt payment of all amounts that may become due hereunder. The security interests, evidenced by a Security Agreement, a Deed of Trust, an Assignment of Certificate of Deposit and an Assignment of Deposit Account as Security, cover certain revenues, accounts and real property of the BORROWER. The LOAN CONTRACT, Security Agreement, Deed of Trust, Assignment of Certificate of Deposit and Assignment of Deposit Account as Security grant additional rights to the STATE, including the right to accelerate the maturity of this Note in certain events. 7,' _ 8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement, Deed of Trust, Assignment of Certificate of Deposit and Assignment of Deposit Account as Security 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. Appendix B to Loan Contract C150040 ,