C153748 Contract

• Contract/PO #: C153748
• Contractor Name: Excelsior Irrigating Company
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Loan Projects - Doc Type: Contract Documents

the STATE without evidence of said current coverage. Throughout the life of this contract, the STATE
reserves the right to increase the above amount of insurance so that said amounts at a minimum
correspond to the amount established by the Colorado Govemmental Immunity Act, now and as
hereafter amended.
7. BORROWER's authority to contract. The BoRROwER warrants that its stockholders and Board of
Directors have, pursuant to the BoRROwER's statutory authority, articles of incorporation, and by-laws,
duly adopted resolutions that are irrepealable for the term of this loan contract, authorizing the
BORROWER'S President and Secretary to do the following on behalf of the BoRROwER:
a. To enter into and comply with the terms of this contract and the Promissory Note;
b. To levy assessments in an amount sufficient to repay the annual amounts due under this
contract, and to make the annual deposits to the reserve debt service fund;
c. To make annua! payments in accordance with the Promissory Note and to make annual deposits
into a reserve debt service fund in accordance with the Pledge of Revenue Provisions herein;
d. To place the assessment revenues pledged for the annual loan payments and the annual reserve
debt service fund deposits into a special account separate and apart from other BoRFtowER
revenues;
e. To execute the deed of trust and the conditional assignment of lease proceeds to provide the
security as specified in the Collateral Provisions of this contract,
f. To execute the securiry agreements to secure the pledged revenues in accordance with the
Pledge of Revenue Provisions herein and to secure the revenues from the lease of augmentation
water in accordance with the Collateral Provisions herein.
Said resolutions are attached hereto as APPENDIX A and incorporated herein.
8. Attorney's opinion letter. Prior to the execution of this contract by the STaTE, the BORROWER shall
submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the person
signing for the BoRROwER was duly elected or appointed and has authority to sign such documents
on behalf of the BORROWER and to bind the BORROWER; that the BORROWER's shareholders and
board of directors have validly adopted resolutions approving this contract; that there are no
provisions in the BORROWER's articles of incorporation or by-laws or any state or local law that prevent
this contract from binding the BoRROwER; and that the contract will be valid and binding against the
BORROWER if entered into by the STATE.
9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and
evidencing this debt is attached as Appendix B and incorporated herein.
a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan funds for
construction of the Project, the Promissory Note may be adjusted in accordance with the Changes
Provisions of this contract.
b. Interest During Construction. As the loan funds are disbursed by the STaTE to the Bo~owER
during construction, interest shall accrue at the rate of 3 3/4%. The amount of the interest accrued
during construction shall be calculated by the STATE and the BoRROwER shall repay that amount
to the STATE either within ten (10) days after the date the SrATE determines that the PRO~ECT has
been substantially completed, or, at the STaTE's discretion, the amount shall be deducted from the
final disbursement of loan funds that the STATE makes to the BoRROwER.
10. Changes. The STATE may decrease the amount of the loan under this contract or extend the time for
completion Of th@ PROJECT thfOUgh 8 REVISION LETTER, approved by the State Controller or his
designee, in the form attached hereto as Appendix C. The REV~s~otv LETrER shall not be val"~d until
approved by the State Controller or such assistant as he may designate. Upon proper execufion and
approval, the REVISION LETTER shall become an amendment to this contract and, except for the
Special Provisions of the contract, the REV~siotv LETrER shall supersede the contract in the event of a
The Excelsior Irrigating Company Page 4 of 12 Loan Contract