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<br />.. . <br />. 11 <br />.. <br /> <br />POLICY NUMBER: 5 <br /> <br />SUBJECT: <br /> <br />COLLATERAL FOR CONSTRUCTION <br />SEVERANCE TAX PERPETUAL BASE <br />PROJECT LOANS <br /> <br />FUND AND <br />ACCOUNT <br /> <br />EFFECTIVE DATE: September 27, 1999 <br /> <br />REVISED DATES: January 22,2003 <br /> <br />POLICY: The Colorado Water Conservation Board (CWCB), pursuant to <br />Section 37-60-120(1), C.R.S., shall take a sufficient security <br />interest in property or take such bonds, notes or other securities <br />evidencing an obligation, as will assure repayment of Construction <br />Fund and Severance Tax Perpetual Base Account loans. The <br />Board's determination of sufficient security will be based on the <br />type of entity applying for project funding as well as the entity's <br />creditworthiness, repayment capacity, and available assets. <br /> <br />PURPOSE: To establish a consistent method for determining sufficient <br />collateral requirements of potential loan recipients. <br /> <br />APPLICABILITY: This policy applies to the consideration of all loan applications <br />from the CWCB Construction Fund and Severance Tax Perpetual <br />Base Account. <br /> <br />PROCEDURE: The CWCB staff will evaluate and recommend to the Board <br />collateral requirements for project loan applications based on the <br />following table. Collateral types will be evaluated and taken in <br />priority until sufficient security is established for a specific loan. If <br />real property is offered as collateral, the applicant shall be required <br />to submit supporting documentation of land values, based on <br />current land use and including improvements financed by the <br />CWCB, from a Colorado Certified General Appraiser. <br /> <br />Prioritized T <br />Public <br />Governments <br />1. Pledge of <br />revenues backed by <br />rate covenant and <br />annual financial <br />reporting <br /> <br />es of Collateral Per T e of Pro' ect S <br />Public Private <br />Districts Inco orated <br />1. Pledge of 1. Pledge of <br />revenues backed by assessment revenues <br />rate covenant and backed by <br />annual financial assessment covenant <br />reporting <br />2. Facilities, water <br />rights, and/or other <br />real pro erty <br />3. Any other assets <br /> <br />onsor Enti <br />Private <br />Uninco orated <br />1. Facilities, water <br />rights, and/or other <br />real property <br /> <br />2. Facilities, water <br />rights, and/or other <br />real roperty <br />3. Any other assets <br /> <br />2. Any other assets <br />