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We would appreciate your assistance in our ongoing investigation of this matter. Please provide <br />the following documentation, which is to be utilized in litigation, if necessary, initiated by the <br />Members of the Association against the Board of Directors, pertaining to this and several other <br />Covenant breaches. <br />� 1. A dated copy of the original BLOA Loan Application. If, for any legal reason, you <br />are unable to provide a copy of this document, please provide the date of such <br />application and the names of the party or parties who signed such document. <br />� 2. A written statement from the Colorado Water Conservation Boaxd confirming that no <br />loan applicant under this program for the current year will receive final approval nor <br />the subsequent disbursement of the proceeds of such loans by the CWCB before some <br />point in time during May of 1998. <br />We respectfully request that you require any representative of BLOA to provide written proof of <br />their authority (copies of the required written approvals referenced above) in order to proceed <br />with the execution of any documents pertaining to this proposed loan, including the loan itself. <br />Please reference the attached copy of our letter to the BLOA Board (without attachments) for <br />citations of applicable articles of the BLOA Covenants, Bylaws and Articles of Incorporation. <br />If you require any further documentation supporting the information in this letter before taking <br />any action, please contact the undersigned at the above address. <br />We thank you in advance for your timely response to this information and our requests for <br />documentation. <br />Sincerely, <br />Blue Lake Owners' Watchdogs <br />(faxed without signatures) <br />Elaine C. Bergquist <br />Co-Chairperson <br />Shirley Helmer <br />Co-Chairperson <br />CWCB — 3/23/98 - Page 2 <br />