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<br />PROMISSORY NOTE
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<br />Date yr11jU3.AJ fIR 1919 Date of First Loan Disbursement lI';7if ~ l I ?, / '7
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<br />1. FOR VALUE RECEIVED, the Chatfield South District ("BORROWER"), a quasi-municipal corporation, promises
<br />to pay' the State of Colorado Water Conservation Board ("STATE"), the principal sum of Five Hundred
<br />Thousand Dollars ($500,000) plus interest at the rate of four and three-quarters percent (4,75%) per annum
<br />for a term of twenty (20) years, pursuant to Loan Contract No. C153837 ("LOAN CONTRACT").
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<br />2. The first payment of $39,275.23 shall be due one year from the date that the STATE first disburses loan
<br />funds to the BORROWER, and annually thereafter until the entire principal sum, all accrued interest, and all
<br />late charges, if any, shall have been paid in full.
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<br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman'
<br />Street, Room 721, Denver, Colorado 80203.
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<br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the STATE may
<br />impose a penalty charge in the amount of 5% of the annual payment.
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<br />5. This Note may be prepaid in whole or in part at any time without premium or penalty, Any partial
<br />prepayment shall not postpone the due date of any subsequent payments or change the amount of such
<br />payments,
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<br />6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to
<br />reduce the principal amount.
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<br />7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN
<br />CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that
<br />may become due hereunder. The security interests, evidenced by a Security Agreement and a Deed of
<br />Trust, cover certain -revenues, real property and water rights of the BORROWER. The LOAN CONTRACT,
<br />Security Agreement and Deed of Trust grant additional rights to the STATE, including the right to accelerate
<br />the maturity of this Note in certain events. '
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<br />8, If any annual payment is not paid when due or any default under the LOAN CONTRACT, Security Agreement
<br />or Deed of Trust securing this Note occurs, the STATE may declare the entire outstanding principal balance
<br />of the Note, all accrued interest, and any outstanding late charges immediately due and payable, as
<br />permitted by Jaw, and the indebtedness shall bear interest at the rate of 9,5% per annum from the date of
<br />default. The STATE shall give written notice to the Borrower, with a copy to the Denver Water Department,
<br />Attn: Legal Division, 1600 West 12th Avenue, Denver, Colorado 80254, of any alleged default and an
<br />opportunity to cure within thirty (30) days of receipt of such notice before the BORROWER shall be
<br />considered in default for purposes of this Promissory Note. '
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<br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or
<br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or
<br />interest thereon is not paid when due or suit is brought, then it shall pay all reasonable costs of collection,
<br />including reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of
<br />collection shall include all costs and attorney fees incurred in connection with such proceedings, including
<br />the fees of counsel for attendance at meetings of creditors' committees or other committees.
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<br />10. This Note shal :" o\(.eJ;Q.~d in all respects by the laws of the State of Colorado.
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<br />, .-{ ~(;)f::-(:,","''''. ~'&~:~t.. BORROWER: Chatfield South Water Oistrict, a quasi-
<br />~,"I. (~"., ..... \:~)~~\ municipal corporation
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<br />'!r:;'AL) '\ '~A'if /7 _ ..9' c:::? ~_
<br />i ~ r S~Ej\L ~ _-1~ By . ~ Z- /~~
<br />
<br />\<::1" \. ./ ,!;) , / Joseph E. Rottman, President
<br />Attest: \'~' "4.:.. 0'0 ..' t'l.~'
<br />~y <>0;, e'" r-.'
<br />'1..4s~ tie o C'H'OCl O~
<br />By ;;~ . ~Q &'J ,.J ,__
<br />Thomas R. Barbour, Secretary
<br />
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<br />Appendix B to Loan Contract C153837
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