C150112 Letter of Substaintial Completion

• Contract/PO #: C150112
• Contractor Name: Kern Reservoir and Ditch Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: MC3
• Loan Projects - Doc Type: Project Completion Letter

Date:
Borrower:
Principal Amount:
Interest Rate:
Term of Repayment:
Loan Contract No.:
Loan Payment:

,."
.,i

PROMISSORY NOTe

June 1, 2003
Kern Reservoir and Ditch Company
$ 3,620,000
5..10% per annum
30 years
C150118, dated June 1, 2003
$238,177.33

Payment Initiation Date': N6 lie...... ~... J, l ~ () 3
,
Maturity Date': IV d "'eo... J, <:...- I) 2.. 0 3.3

, These two fields are filled in after the project has been substantially completed,

1. FOR VALUE RECEIVED, the SORROWER promises to pay the Colorado Water Conservation
Soard ("CWCS"), the Principal Amount plus Interest for the Term of Repayment, pursuant to
the LOAN CONTRACT and this Promissory Note.

2. Principal and interest shall be payable in equal Loan Payments, with the first payment due and
payable one year from the date the CWCS. determines that the project is substantially
complete (Payment Initiation Date), and annually thereafter until all principal, interest. and late
"haraes. if any, hove been paid ill full, witl1 all suCI1 pnnClpal, interest, and late charges,
required to be paid on or before the Maturity Date. '

3. Payments shall be made to the Colorado Water Conservation Board at 1313 Sherman Street,
Room 721, Denver, Colorado 80203.

4. The CWCB may impose a late charge in the amount of 5% of the annual payment if the
CWCB does not receive the annual payment within 15 calendar days of the due date.

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 CWCS and the BORROWER.
The LOAN CONTRACT creates .security interests in favor of the CWCS to secure the prompt
payment of a1\ amounts that may become due hereunder. . Said security interests are
evidenced by a Security Agreement and Deed of Trust of even date and amount and cover
certain revenues and real property of the, BORROWER. The LOAN CONTRACT, Security
Agreement and Deed of Trust grant additional rights to the CWCS, 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 CONTRACTor the

Appendix 2 to loan Contract C150118