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<br />Page 4 <br />LTWD was previously granted a loan of$3,937,500. This loan was approved by the <br /> <br />Legislature and a good portion of the loan has already been drawn. Years later, the proj ected <br /> <br />costs of the project increased, which resulted in LTWD requesting an increase in the loan <br /> <br />amount. Because the prior loan has already been approved and partially drawn, it would be most <br /> <br />efficient to treat the loan increase as a separate loan. Therefore, a strong argument can certainly <br /> <br />be made that it is not in violation of the statute for the Board to grant LTWD two separate loans, <br /> <br />each for an amount less than five million dollars, without the Legislature's approval. <br /> <br />CONCLUSION <br /> <br />If the Board treats the L TWD loan as two separate loans, each less than five million <br /> <br />dollars, the Board has the authority to unilaterally approve the loans without legislative approval. <br /> <br />Although Section 37-60-122(b), C.RS. clearly authorizes the Board to unilaterally approve loans <br /> <br />less than five million dollars, it is less clear whether the Board is authorized to approve multiple <br /> <br />loans to the same company for the same project. However, because the statute does not <br /> <br />explicitly prohibit the Board from granting multiple loans, until the Legislature explicitly states <br /> <br />otherwise, the Board would probably not be in violation of the statute by granting LTWD two <br /> <br />separate loans, each under the amount of five million dollars, without the Legislature's approval. <br />