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<br />AGENCY NAME: Water Conservation Board
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<br />AGENCY NUMBER: PDA
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<br />ROUTING NUMBER: t') 2.. ;: ~A ~^n!5 In
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<br />LOAN CONTRACT
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<br />THIS CONTRACT, made this 1st day of February 2002, by and between the State of Colorado
<br />for the use and benefit of the Department of Natural Resources, Colorado Water Conservation
<br />Board, hereinafter referred to as the CWCB and/or STATE, and Peoples Ditch Company, a Colorado
<br />nonprofit corporation, 23738 Road 40, Sterling, Colorado, 80751 hereinafter referred to as the
<br />BORROWER and/or CONTRACTOR. .
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<br />FACTUAL RE.CITALS
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<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund
<br />Number 486, Organization YYYY, Appropriation 010, GBl P049, Program WTRC, Object Code
<br />5881, Reporting Category: 0049, Contract Encumbrance Number C150049.
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<br />2. Required approval, clearance, and coordination have been accomplished from and with
<br />appropriate agencies. .
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<br />3. Pursuant to the provisions of ~~ 37-60-119 and 37-60-120, C.RS. (1999) the STATE is authorized
<br />to loan money for the construction of water projects for the benefit of the people of the State,
<br />provided that the borrower assures repayment of that money.
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<br />4. The BORROWER is a duly constituted Colorado nonprofit mutual ditch company formed pursuant
<br />to and governed by Article 42 of Title 7, C.RS., located in logan County, State of C010rado.
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<br />5. A Small Project loan Account was established by ~ 37-60-122.7, C.RS. (1999), which authorizes
<br />the eWCB to make loans of up to $100,000 without prior approval from the General Assembly if
<br />the eWCB determines that delay would result in undue hardship on the borrower.
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<br />6. The BORROWER has applied to the STATE for a Small Project loan in the amount of $43,000 to be.
<br />used to construct a pipeline to replace the Borrower's washed-out ditch and diversion structure,
<br />hereinafter referred to as PROJECT, at a total cost of $75,000.
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<br />7. The STATE has reviewed a feasibility report compiled by John Van Sciver, which is incorporated
<br />herein by reference, and, based upon this feasibility report, the STATE determined the PROJECT to
<br />be technically and financially feasible.
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<br />8. At its July 2000 meeting, the CWCB approved a loan to the BORROWER in an amount up to
<br />$43,000, at an interest rate of 3.75% per annum for a repayment term of 20 years. The CWCB
<br />has determined that this loan qualifies as a Small Project loan in accordance with ~ 37-60-122.7,
<br />C.RS. (1999), and the BORROWER will suffer undue hardship if the project is not completed as
<br />soon as possible because of the inability to deliver water.
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<br />9. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
<br />mutually agreeable terms and conditions.
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<br />THEREFORE, in consideration of the mutual and dependent covenants contained herein,
<br />the parties agree as follows: .' ~
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<br />A. The BORROWER agrees as follows:
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<br />1. Construction Fund Program Procedures. The following items are procedures the BORROWER
<br />shall follow during the construction phase of the PROJECT.
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