�_ _..
<br />to the rate schedule as the Contractor deems __�cessary to
<br />efficiently and economically provide for the financial
<br />requirements of the system, includinq repayment of the State,
<br />ble and
<br />as lonq as the rate schedule remains reasona
<br />non-discriminatory. �£ �^ � � ,!
<br />t � f /(E-g��.
<br />9. �p���-��-}��k�j►1 ersssuf-a��i'�en.�t-3r�n�uaepe-r�are3�nrg-eos�t-s-a�nd
<br />se��tee-o�tfa�ges-a�-}e� assessments from time to time as
<br />necessary, npon written notice from the State, to provide
<br />sufficient funds for adequate operation and maintenance,
<br />emerqency repair services, obsolescence reserves, and debt
<br />reserves, and to assure repayment of the project loan to the
<br />State as provid ed herein. Should t e stockholders fail to set any assessment,
<br />the Contra t es�a a e s�essment for purposes of this Contract pur•
<br />suan��to g�u� A�c� S�Incorporation and to its
<br />By-Laws, includinq, but not limited to Article 6, have its
<br />Board of Directors take all necessary actions consistent
<br />therewith to adopt an order or resolution authorizing the
<br />Contractor to contract this loan debt, and authorizinq the
<br />President and the Secretary to pay the indebtedness. Such
<br />orders shall be attached hereto as Exhibit E and included
<br />herein. The Contractor, throuqh a majority vote o��he �., ��y,
<br />shareholders, shall also authorize the deed of trust _ security /���i
<br />interest required by the State in paragraph B.14. below. The
<br />above conditions must be performed by the Contractor prior to
<br />the State performance under this contract. Approval by the shareholders ,,,��
<br />of the contracting of this loan debt, of its repayment by the President and** 7 `
<br />il. Pursuant to its Articles of Incorporation and to its �
<br />By-Laws, includinq, but not limited Article �i, the ��)
<br />Contractor, through either i ers or its Board of
<br />Directors, as provided there� ake all r�ecessary
<br />actions consistent therewith evy ments to raise
<br />sufficient funds to pay this co �b� in a timely
<br />manner and as required by r ondit,�ions herein to
<br />assure repayment of the pro e` 1 n to the S�ate. In the
<br />event that the assessment(s levied by the Contractor, or the
<br />revenues resulting therefrom, are or become insufficient to
<br />assure repayment of the State as required by the terms and
<br />conditions herein, then the Contractor, upon written notice
<br />thereof from the State, shall immediately take all necessary
<br />action consistent with its By-Laws, includinq but not limited
<br />to additional assessments, to raise sufficient revenue to
<br />assure repayment of the project loan to the State.
<br />12. Provide the State with such periodic reports as the
<br />State may require and permit periodic inspections of its
<br />operations and accounts by a desiqnated representative of the
<br />State.
<br />13. Repay to the State the total principal sum of One
<br />Hundred Thousand Dollars ($100,000), which includes the project
<br />loan amount and the Two Thousand Dollar ($2,000) feasibility
<br />repnrt amount, toqether with interest at the rate of five
<br />percent (5�) per annum, said repayment ta be made in constant
<br />annual installments of Eight Thousand Twenty-Four pollars
<br />($8.024) each, for twenty (20) years, as shown in Exhibit C,
<br />attached hereto and incorporated by reference herein, which
<br />first installment shall be due and payable on the first day of
<br />the month n�xt succeedinq the month in which the State
<br />determines that the project has been s�bstantially completed,
<br />and yearly thereafter until the entire principal sum shall have
<br />been paid. However, in the event the Contractor does not draw
<br />f��n�e cammenrinry �n the date snecified in Uaraqraph D.]..a.
<br />belo*,�, the obli�ati�n to regay �hall be postgvned f�r Lhe sa:r.e
<br />number of months as the Contractor delays in drawinq funds.
<br />Said installment payments shall be made payable to the Colorado
<br />Water Conservation Board, payable at the offices of said Board
<br />in Denver, Colorado.
<br />**Secretary, of the signing of the security interest as required by paragraph 6.14.
<br />below, of the levying of assessments in an amount sufficient to repay and assure
<br />payment of the loan, and of the security interest in such assessments shall be
<br />obtained at the next scheduled special meeting of the shareholders on August 14,
<br />1989. No monies shall be expended under this Contract unless and until such
<br />approval of the shareholders has been obtained. Upon its execution, such
<br />sharehol�er approval shall become a part f t is ` on ` ra�G,t a��e incorporated
<br />herein b this reference as Exhibit "F.".��� ���'
<br />Page 4 of 11 Pages
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