C150205 Feasibility Study

• Contract/PO #: C150205
• Contractor Name: Veits Pipeline Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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Number Six Ditch Company, Inc.
Policy # 2

POLICY ON COLLECTION OF DUES, ASSESSMENTS, AND FEES

1. The purpose of this Policy of the Number Six Ditch Company is to define the actions to
be taken by the Company in case of a default by a Member or Participating Non
Member (PNM).

2. Any Member/PNM who fails to pay dues, assessments or fees when due and, after
receipt of a written notice from the Company of such failure, shall be a Defaulting
Member/PNM and, as such, shall:
a. be charged an administrative fee of $150,
b. be charged a fine of 5% of the amount in arrears,
c. be charged interest on all past due assessments, fines, fees and costs of
collections at the rate of 1% over prime per annum compounded monthly, and
d. lose the right to vote in Company matters (Members only) until the default is fully
corrected, including any fines, fees, interest or costs of collection.

3. Any Member/PNM who does not agree to a fee, dues, or assessment after it has been
made may request an appeal panel with the Board of Directors of the Company. In the
event that the Member/PNM and the Board cannot come to resolution, the
Member/PNM may request a hearing with the Mancos Conservation District Board or an
outside mediator agreeable to both the Company Board of Directors and the Member to
hear the dispute

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4. The Company shall pursue all available remedies to collect amounts due from any
Defaulting Member/PNM, which may include but is not limited to:
a. Repeated notices, verbal and written contacts, personal persuasion, and
b. Termination of water delivery to the Defaulting Member/PNM
c. Extending a loan evidenced by a promissory note and secured by a deed of trust,
and
d. After 6 months from the due date of the unpaid assessment, the Defaulting
Member/PNM shall be notified in writing that all costs associated with the
collection will be added to their default payment obligation, and that the Company
may pursue the matter in small claims court or county court.
e. Any other available legal remedy.
f. The Defaulting Member/PNM shall be responsible for all costs of collection.
g. The Company shall continue to pursue collections as long as deemed practical
by the Company.

5. Any amounts collected from a Defaulting Member/PNM by the Company shall be
applied first to pay the Company's costs of collections, including attorney costs, and the
remainder shall be applied to the amount due from the Defaulting Member/PNM.