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On June 8, 2006, Bill Porter was tragically killed while operating a dozer to clear additional <br /> ranch land for irrigation. Mr. Porter's ranch and construction expertise was an integral part of <br /> the operation and success of the Alkali Ranch. Marla Porter and other family members have had <br /> to re-evaluate their ranch operations to compensate for the loss of Bill Porter. Additionally, <br /> there are a number of complex estate issues that need to be resolved to allow future ranch <br /> operations to proceed and for Bill Porter's personal assets and debts to be assigned. <br /> Discussion <br /> The Board has the statutory authority under Section 37-60-120 (3), CRS, to make loan <br /> deferments to an entity(borrower)provided that it has demonstrated that it has encountered <br /> significant and unexpected financial difficulties, and that it has been duly diligent in its efforts to <br /> comply with the repayment provisions of its contract with the Board. <br /> Marla Porter over the past year has been working diligently with other family members to restore <br /> effective operations of the ranch, reservoir, and irrigation system. Although the annual <br /> payments have been made on time since January 2005, Marla Porter is currently experiencing <br /> financial difficulty due to the settlement of Bill Porter's estate and its future plans. A deferment <br /> in the amount of$42,157.18 for the principal portion of the annual payment in the amount of <br /> $64,147.13 is requested along with the annual payment remaining the same over the term of the <br /> loan. <br /> Marla Porter has made the interest portion of the annual payment in the amount of$21,989.95 <br /> for January 2008 in good faith. By deferring the principal portion and not changing the payment <br /> amount, the term of the loan extends an additional year At an annual payment of$64,147.13, <br /> the maturity date will be January 2025 instead of 2024. <br /> Recommendation <br /> Staff recommends that the Board approve the request to defer the principal portion of the January <br /> 2008 annual loan payment; to continue the January 2009 annual loan payment in the amount of <br /> $64,147.13; and to allow the repayment term to extend one year providing maturity of the loan in <br /> January 2025. The Promissory Note and respective amendment should be completed for Loan <br /> Contract No. C150116 to reflect the revised conditions herein stated and approved. <br /> This deferral is based on CWCB's finding that the Porter Estate and Marla Porter have <br /> encountered significant hardship and unexpected financial difficulties, and that they have been <br /> duly diligent in their efforts to comply with the repayment provisions of Bill Porter's loan <br /> contract with CWCB. <br /> cc: Dan Kerst,P.C.,Attorney for the Porter Estate <br /> Marla Porter,Alkali Creek Ranch <br /> Amy Stengel, AGO <br /> Steve Biondo, CWCB <br /> Vaughn McWilliams, CWCB <br /> 2 <br />