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Sanchez Ditch and Reservoir Company <br />July l, 2011 (UPDATED July 18, 2011) <br />Page 4 of 4 <br />Agenda ltem 22a <br />Collateral: Security for the loans will not change as a result of this approval. The current collateral <br />includes: <br />1) A pledge of assessment revenues; <br />2) An "undivided one hundred percent (100%) interest in and to the Sanchez Dam and <br />Reservoir and all appurtenant structures thereto, including all lands on which these facilities <br />are located." (The Reservoir collateral was in a second position behind a USDA-FHA loan <br />which was paid off in 2005); <br />3) The Company maintains two Certificates of Deposit totaling $19,891.96 as required in loan <br />contract C 153755A which are assigned as security for the loan. This collateral is in <br />compliance with the current CWCB Financial Policy #5 (Collateral). <br />Staff Recommendation (Board approved Staff Recommendation as presented) <br />Staff recommends the Board approve the Sanchez Ditch and Reservoir Company's request for <br />financial relief by granting one annual loan payment deferment of principal and interest for Loan <br />Contracts C153623 and C153755A, totaling $31,385.92. The interest portion due within the <br />deferred payment will be transferred to principal, which will be reflected in the new amortization <br />schedules. Since the principal will be increased, the term of the loan will also need to be increased. <br />The Company will return to making its annual payments in 2012. <br />cc: Jerry Lorenz, President <br />Susan Schneider, AGO <br />Attachments: <br />Sanchez Ditch and Reservoir Company - June 2, 2011 Letter <br />CWCB Financial Policy Number 10 <br />