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Implementation Plan <br /> We have outlined the following tasks as part of our implementation strategy to `present <br /> assessment and recommendations to CWCB by 6/99:" <br /> • Identify all real loan defaults in the Construction Fund loans to date. <br /> • Develop a table that shows, depending upon the financial characteristics of each type of <br /> borrower, the range and type of collateral that would be"sufficient"for each category. <br /> • Present the proposed policy for consideration by the Board by June 30, 1999. <br /> Collateral Requirements for CWCB Loans <br /> (1) State Statutes specify collateral requirements as follows: <br /> "CRS 37-60-120. Control of projects-contractual powers of the board. <br /> (1) The state of Colorado <br /> •shall have the ownership and control of such portions of said projects, or <br /> •shall take a sufficient security interest in property, or <br /> •take such bonds, notes, or other securities evidencing an obligation, <br /> • as will assure repayment of unds made available by section 37-60-119." <br /> (2) The Guidelines for Financial Assistance through the CWCB Construction Fund("Guidelines")also <br /> discusses security(collateral)in a general way: <br /> "The project sponsor must provide adequate security to guarantee repayment of the loan. The security <br /> may be: <br /> • title to project property equal in value to the loan; <br /> • a pledge of revenues or taxes; or <br /> • bonds, notes or other securities." <br /> Lending Requirements of other State Agencies <br /> For comparison,these are the collateral requirements for 2 other State agencies: <br /> (1) Colorado Water Resources and Power Development Authority("CWRPDA"): <br /> "To make loans...which loans may be secured by loan and security agreements, leases, or any <br /> other instruments, upon such terms and conditions as the board shall deem reasonable " <br /> (2) Colorado Department of Local Affairs ("DOLA"): <br /> • "...loans..shall only be made under such terms as will insure repayment of the loan with <br /> interest..." <br /> 2 <br />