C153579 PIF

• Contract/PO #: C153579
• Contractor Name: Highline Buzzard Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

411
of assessments in an amount sufficient to repay and assure
repayment of the loan, and the signing of the security interest
in such assessments . Such resolution shall be attached hereto
and incorporated herein as Exhibit C. The above conditions
must be performed by the Contractor prior to the State
performance under this contract.
11. Pursuant to section 7-42-104, C.R. S. ( °'. - - to its
Articles of Incorporation and to its By-laws, , - - • or,
through either its shareholders or its Boa of Dir - =. '
shall take all necessary actions consiste r ' th to levy
assessments to raise sufficient funds to a hi loan
debt in a timely manner and as required by th
conditions herein to assure repayment of the projec
the State. In the event that the assessment(s) levied by ` e
Contractor, or the revenues resulting therefrom, are or become
insufficient to assure repayment to the State as required by
the terms and conditions herein, then the Contractor, upon
written notice thereof from the State, shall immediately take
all necessary action consistent with its By-laws and section
7-42-104, C.R.S. (1986) . including but not limited to
additional assessments, to raise sufficient revenue to assure
repayment of the project loan to the State.
12 . Provide the State with such periodic reports as the
State may require and permit periodic inspections of its
operations and accounts by a designated representative of the
State.
13 . Repay to the State the total sum of One Hundred Fifteen
Thousand Two Hundred Ninety-Three Dollars and Seventy-Five
Cents ($115, 293 .75) , which includes the project loan amount
with interest at the rate of five percent (5%) per annum, said
repayment to be made in constant annual installments of Four
Thousand Six Hundred Eleven Dollars and Seventy-Five Cents
($4, 611.75) each, for Twenty-Five (25) years, as shown in
Exhibit D. attached hereto and incorporated by reference
herein, which first installment shall be due and payable on the
first day of the month next succeeding the month in which the
State determines that the project has been substantially
completed, and yearly thereafter until the entire principal sum
shall have been paid. However, in the event the Contractor
does not draw funds commencing on the date specified in
paragraph C. 1.a. below, the obligation to repay shall be
postponed for the same number of months as the Contractor
delays in drawing funds . Said installment payments shall be
made payable to the Colorado Water Conservation Board, payable
at the offices of said Board in Denver, Colorado.
14 . As security for the loan to be made to it by the
State, execute a Deed of Trust within thirty (30) days of the
substantial completion of the project that shall convey to the
State an undivided fifty percent (50%) of the following:
(a) 180 lineal feet of 24" diameter, 80 p. s . i .
plastic irrigation pipe.
(b) 3600 lineal feet of 21" diameter, 80 p.s. i .
plastic irrigation pipe together with all appurtenant
structures, bends, fittings, thrust blocks and
drainage pipes required for the proper installation of
the pipe quantitites shown above.
15. Obtain and maintain general fire and hazard insurance
on the project in an amount not less than the outstanding
amount of the loan made by the State to the Contractor until
the Contractor has repaid the loan in full under the terms of
paragraph A. 13 . above. The State shall be the sole insured of
this policy. The Contractor shall submit certificates of
insurance evidencing such insurance policies to the State at
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