C150064 contract docs

• Contract/PO #: C150064
• Contractor Name: Western Area Power Administration, U.S. Department of Energy
• Contract Type: Loan
• Water District: 0
• County: Statewide
• Loan Projects - Doc Type: Contract Documents

revenues collected beginning in Federal fiscal year 2012. Section 3(c)(3) requires the
inclusion herein of provisions designed to minimize impacts on electrical power rates.
8. The CWCB now desires, by this contract, to loan money to the BORROWER fOP thlS
PRO�ECr upon mutually agreeable terms and conditions.
THEREFORE, in consideration of the mutual and dependent covenants contained herein,
the parties agree as follows:
A. LOAN PROVISIONS
1. Terms of Loan. The CWCB agrees to loan to the BoRROwER an amount not to exceed
the AuTHOR�zEO LoaN AMOUNr at an interest rate of four and one-half percent (4.5%) per
annum for a repayment term of thirty (30) years, which term shall commence in 2012.
The BoRROwER agrees that it shall repay this loan in accordance with the Repayment
Provisions of this contract.
2. Use of Loan Funds. The BoRROwER agrees that no loan funds shall be used to exercise
the power of eminent domain to acquire water rights.
3. DISBURSEMENT SCHEDULE The BoRROwER shall submit to the CWCB written requests
for loan disbursements that include a brief description of the PRO�ECT activities and costs
to be covered by the disbursement. The CWCB shall disburse the requested loan funds
within fifteen (15) days from the CWCB's receipt of the request.
4. REPAYMENT PROVISIONS.
a. Interest shall accrue on the loan funds disbursed by the CWCB to the BoRROwER at
the rate of four and one-half percent (4.5%) per annum.
b. The BoRROwER shall repay to the CWCB the amount disbursed to the BoRROwER,
up to the principal sum of five million five hundred thousand dollars ($5,500,000), and
interest, at the rate of four and one-half percent (4.5%) per annum for a term of thirty
(30) years, with the thirty year repayment term commencing on October 1, 2012.
This thirty year payment term may be modified by the BoRROwER's exercise of its
option to not remit annual payment, set forth at section A.5 herein, provided that the
BoRROwER shall pay in full all principal and interest due on this loan no later than
September 30, 2057. The annual payment amount shall be based upon a thirty year
repayment term.
c. Payments by the BoRROwER are contingent upon Federal funds being appropriated,
budgeted and otherwise made available. Pursuant to 31 U.S.C.A. 3123, the
BoRROwER pledges its full faith and credit to repay this loan, and shall pay in full all
principal and interest due on this loan no later than September 30, 2057.
d. The exact amount of the first annual payment shall be established by the CWCB and
the BoRROwER will be notified on or before October 1, 2011. The CWCB shall
establish the subsequent annual payment amounts and the BORROWER WIII b2
notified on or before thirty days prior to the annual October 1 due date. The initial
payment shall be based on the terms of Paragraph 4.b with interest accruing from
the date of disbursement up through October 1, 2012. The estimated initial payment,
based on a disbursement of five million five hundred thousand dollars ($5,500,000)
on October 1, 2002, would be $501,785.20. The initial payment amount shall be
based on the actual dates of disbursement. The subsequent payment amounts
shall be based on any deferrals claimed by the BoRROwER.
Page 2 of 8 Loan Contract