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<br />. ASCS determined that aMID had eligible land as defined at 7 CFR Part <br />702.5. <br /> <br />. ASCS determined that aMID was an eligible entity according to 7 CFR <br />Part 702.2 and 6. <br /> <br />. SCS determined that OMID is located within the Grand Valley Salinity <br />Unit. <br /> <br />. SCS had prepared the engineering design. <br /> <br />. April 8, 1992 the ASCS County Committee obligated the United States to <br />$200,000 for the MML project. <br /> <br />. June 2, 1992, the State Committee gave the County Committee approval <br />to obligate the United States to $400,000 for the MML project. <br /> <br />. Once the County Committee has obligated funds OMID will be paid upon <br />project completion and certification. <br /> <br />. As of 1994, NRCS is responsible for making cost-share payments on <br />completed projects. <br /> <br />October 29, 1996 OMID board adopted two resolutions which are amendments <br />to the CWCS loan to MMLE. <br /> <br />The first resolution is an agreement between aMID and MMLE authorizing <br />MMLE to: 1) borrow $871,000 from CWCS to undertake the rehabilitation of <br />MML according to plans previously developed by NRCS; 2) authorize MMLE to <br />contract with contractors, laborers, suppliers, materialmen, consultants and oth- <br />ers to complete the MML project; 3) transfer ownership of MML from aMID to <br />MMLE; 4) assign all of OMID's rights to enter into a contractor agreement to <br />MMLE; 5) direct MMLE to establish a certificate of deposit pledging this security <br />deposit to OMID; 6) authorize MMLE to subordinate this security deposit to the <br />State of Colorado; and 7) make irreparable the previously stated authorizations. <br /> <br />Comment: The agreement referenced in this resolution has not been <br />found, suggesting none exists. OMID has an easement to access MML for 0 & <br />M. Evidence that that this easement right has been transferred has not been <br />found leading one to believe this resolution is a sham transaction which will be <br />ignored for tax purposes. <br /> <br />Other issues addressed in the first resolution are: 1) OMID will loan MMLE <br />money for insurance; 2) the parties will assign or delegate each parties rights or <br />8 <br />