C153756 Substantial Completion Letter

Home Browse Search

PROMISSORY NOTE Principal Amount:: $65,000 Interest Rate: 3'/4% Term: 10 Years Loan Payment: $7,717.53 Loan Contract:: #C153756 Date: August /5 , 1997 1. FOR VALUE RECEIVED, the Lower Arkansas Water Management Association ("BORROWER") promises to pay the State of Colorado Water Conservation Board ("STATE"), the principal sum of$65,000.00 with annual payments of $7,717.52 based on an interest rate of 31/4% per annum on the outstanding principal balance for a term of 10 years, or until paid in full, pursuant to Loan Contract#C153756 ("LOAN CONTRACT"). 2. The first payment shall be due one year from the date the STATE accepts the feasibility study described in the Loan Contract as completed, and annually thereafter until the entire principal sum and any accrued interest shall have been paid in full. 3. All payments received shall be applied first to accrued interest and then to the retirement of the principal. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman Street, Room 721, Denver, Colorado 80203. 4. This Note may be prepaid in whole or in part at any time without premium or penalty, with prepayments applied first to any accrued interest and then to reduce the principal amount. Any partial prepayment shall not postpone the due date of any subsequent payments or change the amount of such payments. 5. This Note is issued pursuant.to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts which may become due hereunder. The security interests, evidenced by security agreements, deed of trust, stock assignment, and assignment of deposit account, cover certain revenues and accounts of the BORROWER and grant additional rights to the STATE, including the right to accelerate the maturity of this Note in certain events. 6. If any payment of principal or interest is not paid promptly when due or any default under the LOAN CONTRACT or the security agreements, deed of trust, stock assignment, or assignment of deposit account securing this Note occurs, the STATE may declare the entire outstanding principal balance of the Note, and all accrued interest, immediately due and payable, without notice or demand, and the indebtedness shall bear interest at the rate of 31/4% per annum from the date of default. 7. The BORROWER, any guarantor, and any successor of the BORROWER who may hereafter become primarily or secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest thereon is not paid when due or suit is brought, then it shall pay all reasonable costs of collection, including reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of collection shall include all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for attendance at meetings of creditors' committees or other committees. 8.• This Note shall be governed in all respects by the laws of the State of Colorado. BORROWER: Lower Arkansas -ter M-nageme'•s•' cation • By Y Willi. "1J. Grasmick, President Attest: By / 7 __ . Zwoo Dona d F. Hig ee, Corpor/ Secretary Appendix C to Loan Contract #C153756 •