Memorandum Agenda Item 15‎(a)‎ 11/14/2003

• Description: Western Area Power Administration Loan - Interest Rate, Collateral and Term
• Date: 11/14/2003
• Water Supply Pro - Doc Type: Board Memo

•
1111 The loan shall be secured by the full faith and credit of United States government pursuant to 31
U.S.C.A. 3123.
The term of the loan shall be 30-years. Interest will begin accruing from the date the funds are
disbursed,but no principal payment will be due until 2012. Accrued interest will be added to the
principal and the loan amortized over 30-years starting in 2012. WESTERN may elect to repay
the CWCB in one lump sum at any time or make periodic payments. There would be no
prepayment penalties.
The project shall be considered to be substantially complete on the date that funds are dispersed.
WESTERN may elect to not remit a loan payment for the purpose of minimizing the impact of
loan repayment on SLCA-IP rates,provided that WESTERN notify the CWCB of its intent to
not remit a loan payment. In this event, interest shall continue to accrue,but no late charges will
apply.
WESTERN's payments shall be contingent upon federal funds being appropriated,budgeted, and
otherwise made available. A non-payment shall not reduce or eliminate WESTERN's obligations
to repay principal and interest.
Final approval of the loan should also be conditioned upon WESTERN's acceptance of other
standard CWCB contract provisions.
Attachments
Loan Application
• PL 106-392
List of Capital Projects to be financed by the Loan
Copy of 2002 Loan Contract
WAPA's 2002 Annual Report
Action taken by the CWCB November 20,2003
The CWCB approved the Staff Recommendation
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Colorado Water Conservation Board 4
Flood Protection•Water Project Planning and Financing•Stream and Lake Protection
Water Supply Protection•Conservation Planning