C153514 PIF Contract - Laserfiche WebLink

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, - 11. Repay to the State the total principal sum of Seven Hundred Thousand Dollars ($700,000), which includes the project loan amount and the Sixty Thousand Dollars ($60,000) feasibility report amount, together with interest at the rate of five percent (5%) per annum. said repayment to be made in constant annual installments of Forty Thousand Seven Hundred Ninety-Six Dollars ($40,796) each. for forty (40) years. as shown in Exhibit C, attached hereto and incorporated by reference herein, which first installment shall be due and payable on the first day of the month next succeeding the month in which the State determines that the project has been substantially completed, and yearly thereafter until the entire principal sum shall have been paid. However. in the event the Contractor does not draw funds commencing on the date specified in paragraph D.I.a. below, the obligation to repay shall be postponed for the same nU,mb~r oonths as the Contractor delays in drawing funds. S i 'alIment payments shall be made payable to the Colo~. Conservation Board. payable at the offices of said B~ In D~~colorado. 12. Pursuant to i~-~~JbJess, levy on, and collect from its shareholders' s~ice charges, water delivery tolls and fees, and/or sessments as will ensure that the payments for which paragraph B.11 above calls are timely made. 13. As security for the loan to be made to it by the State, execute a warranty deed within thirty (30) days of the first advance of funds from the State as provided in paragraph D.l.a. below which shall convey the Gurley Dam and Reservoir with all appurtenances which are located in Water District 60, Water Division 4. San Miguel County, Colorado, to the State. 14. Obtain and maintain general fire and hazard insurance on the project in an amount not less than the outstanding amount of the loan made by the State to the Contractor until the Contractor has repaid the loan in full under the terms of paragraph B.II. above. The State shall be the sole insured of this pOlicy. The outstanding loan amount payable to the State shall be reduced in the amount of any payments made to the State under this insurance coverage. If only a portion of the outstanding loan amount is paid to the State under this policy, the number of installment payments shall remain unchanged; however, the amount of each payment shall be reduced. IS. Comply with the Construction Fund Program Procedures attached hereto as Exhibit D and incorporated by reference herein. 16. Comply with the provisions of section 37-60-120, Colorado Revised Statutes, and any other applicable statutes, procedures. requirements, rules, or regulations which the State has. 17. Not sell, convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the project or any portion thereof, so long as any of the annual installments required by paragraph B.11. above remain unpaid, without the prior written concurrence of the State. C. Upon default in the payments herein set forth to be made by the Contractor. or default in the performance of any covenant or agreement contained herein, the State, at its option, may: (a) declare the entire principal amount then outstanding immediately due and payable; (b) for the account of the Contractor, incur and pay reasonable expenses for repair, maintenance, and operation of the project herein described and such expenses as may be necessary to cure the cause of default; (c) take possession of the project, repair, maintain, and operate or lease it; (d) act upon the security (described in paragraph B.13. above) conveyed to the State; (e) take action Page ~ of 10 Pages