ALP 7

I (b) he construction costs allocated to the State shall accrue interest during construction at
2 the Proje t Interest Rate of 8.315% as established pursuant to the provision of Section 5(f) of the
3 Act of A ril 11, 1956 (70 Stat. 105) as amended by the Act of June 27, 1960 (74 Stat.255).
4 (c) he Estimated, Final or Remaining Repayment Obligation may be reduced by
5 paymen s) of all or a part of that repayment obligation, and may be reduced by any allowable
6 credits ward Project construction costs, without penalty. It is the State's intent to make
7 payme s not to exceed $36,000,000 toward its allocable capital obligation with an initial
8 $12,00 ,000 payment upon execution of this contract and the remaining $24,000,000 after July
9 01, 20 2, subject to the State's additional appropriations for such funds and the State's
10 discre on. Upon contract execution and the State's first payment of $12;000;000, IDC on the
11 State' reimbursable Project construction cost allocation will end, and annual amortization
12 intere t at the Project Interest Rate on the Estimated Repayment Obligation of $36,214,474 will
13 begin as demonstrated by the repayment schedule provided in Exhibit C. Reclamation will
14 adjus the repayment schedule to account for reductions in the State's capital obligation as a
15 resul of the State's intended payments and will transmit to the State at the end of the calendar
16 year
17 repa
18 the
19 allo
20 6(
adjusted repayment schedule. The State will have the option in any year of the
nt period to: 1) pay, as a minimum, the annual amortization. payment as adjusted from
ous year; 2) pay all or part of the remaining capital obligation; or 3) declare their Project
n assigned to the Remaining Repayment Obligation relinquished as provided by Section
3) of the Settlement Act, as amended. Amortization interest will stop accruing on the
21 Re aining Repayment Obligation assigned to the State's Project allocation under relinquishment
22 at e year the State declares its relinquishment option as provided under Article 28.
14