C150049 Contract

• Contract/PO #: C150049
• Contractor Name: People's Ditch Company
• Contract Type: Loan
• County: Logan
• Loan Projects - Doc Type: Contract Documents

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Promissory Note
Date: February 1,2002 . Date of Completion joilll C..- J y 2D 'Z
1. FOR VALUE RECEIVED, the Peoples Ditch Company ("BORROWER") promises to pay the State of Colorado
Water Conservation Board ("STATE"), the principal sum of Forty Three Thousand Dollars($43,000) plus interest
at the rate of 3.75% per annum for a term of twenty (20)years, pursuant to Loan Contract No. C150049 dated
February 1, 2002 ("LOAN CONTRACT").
2. Principal and interest shall be payable in equal installments of$3094.37,with the first payment due and payable
one year from the date that the State determines that the project is substantially complete, and annually
thereafter until all principal, interest, and all late charges, if any, have been paid in full. All principal, interest, and
late charges, if any,then remaining unpaid shall be due and payable 20 years thereafter.
3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman
Street, Room 721, Denver, Colorado 80203.
4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may
impose a late charge in the amount of 5%of the annual payment.
5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment
shall not postpone the due date of any subsequent payments or change the amount of such payments.
6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce
the principal amount.
7. 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 that
may become due hereunder. The security interests, evidenced by a Security Agreement, an Assignment of
Certificate of Deposit and an Assignment of Deposit Account as Security, cover certain revenues and accounts
of the BORROWER. The LOAN CONTRACT, Security Agreement and Assignments grant additional rights to the
STATE,including the right to accelerate the maturity of this Note in certain events.
8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement
or Assignments securing this Note occurs, the STATE may declare the entire outstanding principal balance of
the Note, all accrued interest, and any outstanding late charges immediately due and payable, and the
indebtedness shall bear interest at the rate of 7% per annum from the date of default. The STATE shall give the
BORROWER written notice of any alleged default and an opportunity to cure within thirty(30) days of receipt of
such notice before the BORROWER shall be considered in default for purposes of this Promissory Note.
9. The BORROWER, any guarantor, and any other person who is now or 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 if 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.
10. This Note shall be governed in all respects by the laws of the State of Colorado.
r-', BORROWER: Peoples Ditch Company, a Colorado
7 r, ;:' - nonprofit corporation
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o By LLB .--`
Tom Desot , e ident
Attbs„ r'.
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Dartr Aefiue{I , Corporate Secretary
Appendix 2 to Loan Contract C150049
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