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~ ~ ~. ~ DOLORES WATER CONSERVANCY UISTWCT RE50~UTIOIY NO.Ob-U2 RESOLUTYON APPROVING AMENDMENTS TO MBIA LNC. AGR~EMENT TO ADNST THE SECURITY FOR L4ANS C 150058A AND C I 50193 FROM THE COLORADO WATER CONSERVATION BOARD 7"O THE DOLORES vVATER CONSERVANCY ]~ISTRICT ("DISTRICT'), ACTING $Y AND THR4UGH THE DOLORES vVATER coNSERVANCY 1~1STRICT WATER ACTivITY ENTERPR]SE WHEREAS, the Dolores 'Water Conservancy District Water Activity Enterprise {tbe "Enterprise'~ is an entetptise within the meaning of C.R.S. § 37-45.1-lO1 et seg., and Article X, Sectiun 20 of the Colorado Constitution, and was established by Resolucion No. 93-02 of the District, dated Decomber 14, 1993; and WHE~tEAS, the Distri.ct, acting by and through th.e Enterprise ("Horrawer'~, executed Loan Contract C 150b5SA with the Coloradn Water Conservation Board (the "CWCB"} for a loan of up to $5,4fi1,280, bearing interest at the rate of 3.5% for a tetm of ug to 30 years ("Original Loan Contract"), to finance the ''gation mp nts of the District's WPTPACK plan and the purch of shates o`B" Stock om ontezuma Ve~lley Irrigation Company " C"), th s ity as the uity un nvestment Agre~ment establish by orrowe.r with IA Inc. ted December 5, 2002 ("Investment A~eement d amcnded er 1, 2005; and 'WHEREAS, the bistrict received fiuids under tt,e 4riginal Loan Contract to purchase the MVTC "B" Stock and construct tkre Sandstone West portion of WETPACK irrigati.on f aGilities a nd a Tanended O riginal Laan C ontract a s o f S eptember 1, 20 O5, t o reflect a principal amount bot to exceed of $2,530,Q00 and added, as additiorta! security, the pledge of $oaower's revenues from the Entetprise necessary t~ assure payznent of the annual dolst service uuder the Original Loan until such time as MBLA Inc. atakes its first payrnent from the Investrnent Agreement to the CWCB; and WHEREAS, eC the same time, Horrower received a second CWCB loan, under Loan Contract C150193 ("New Laan Contract"), in an amount not ta exceed 53,323,180 or ninety percent (90%) of the cost nf the coastruction of WETPACK irrigation facilities, in addition to Sandstone, whichever is less, (the "Project"), at an interest rate of 2.5% per annum for a term of up to thitty (30} years ta finance the Project, with the security also as the Investmcnt Ag-eement; and WHEREAS, Bonovs~er, now has the opportunity to provide substituted security for the Original and New Loan Con~acts with a higher inteces[ rate than that under the current Investm.ent A~eement by bifurcating the annuity under the Investment Agreement to provide an amended annuity with a higher interest rate as security to ~ay khe Originat Loan and, as substituted seeurity for the New T,oan, to provide a three-year, short teim loan under a new Ynvestment documtnt with MB'IA Inc. tagether with a pledge of a new, long term annuit~r e~t the Cermination of the three-year Yerm. Appendix C to Loan Contract C150193 Amendment No. 1