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<br /> 10. The CWCB approved at their January 19, 1994, meeting, a loan to the CITY in an amount not to exceed
<br /> Five Million Five Hundred Thousand Dollars ($5,500,000), hereinafter referred to as MAXIMUM LOAN AMOUNT, at an
<br /> interest rate of four percent (4%) per annum, and for a duration of forty (40) years; and
<br /> 11. Pursuant to Chapter 265, Section 1, Colorado Session Laws, 1994 (Senate Bill 94-029), the Colorado
<br /> General Assembly authorized CWCB to loan to the CITY an amount not to exceed Five Million Five Hundred
<br /> Thousand Dollars ($5,500,000) for a term of forty (40) years for the construction of the PROJECT. This total amount
<br /> may be loaned to the CITY acting by and through the BORROWER to enable its participation in the Northern Colorado
<br /> Water Conservancy District Southern Pipeline Project, phase 2, eastern extension, if the Colorado Water
<br /> Conservation Board determines, in its sole discretion, that the project and participation of the CITY is technically and
<br /> financially feasible and that financing through the Colorado Water Resources and Power Development Authority is
<br /> not available or has been exhausted and establishes appropriate repayment terms; and
<br /> 12. The CITY'S and/or BORROWER'S participation in the PROJECT will consist of entering into an Allotment
<br /> Contract with the Northern Colorado Water Conservancy District, attached hereto as APPENDIX B, to provide the
<br /> loan funds to pay for the CITY'S and/or BORROWER'S proportionate share of the construction costs of the PROJECT,
<br /> In return, the CITY'S and/or BORROWER is entitled to utilize a certain proportion of the capacity of the pipeline to
<br /> deliver water to the CITY'S and/or BORROWER'S facilities, and to assign, transfer or lease any part of the CITY'S and/or
<br /> BORROWER'S allotment of capacity in the pipeline, hereinafter referred to as CONTRACT RIGHTS; and
<br /> 13. At their March 13, 1995, meeting, the Board made the finding that the project is technically and
<br /> financially feasible; and
<br /> 14. The Colorado Water Resources and Power Development Authority has advised the State that any
<br /> financing available for the City of Fort Morgan for the SWSP Project has been exhausted; and
<br /> 15. The STATE understands that the repayment of the funds loaned, including interest thereon, will come
<br /> from revenues pledged for the repayment thereof from water user charges or fees and that this obligation does not
<br /> constitute a debt of the BORROWER or the CITY within the meaning of any constitutional or statutory limitations; and
<br /> 16. The parties recognize and understand that such water revenues of the CITY have also been pledged for
<br /> the payment of the Water Revenue Refunding and Improvement Bond, Series 1994, of the BORROWER; and
<br /> 17. The STATE now desires, by this contract,to loan money to the CITY acting by and through the BORROWER
<br /> for this PROJECT upon mutually agreeable terms and conditions, subject to the availability of funding for that purpose.
<br /> NOW THEREFORE, in consideration of the mutual and dependent covenants contained, it is agreed by
<br /> the parties as follows:
<br /> A. The BORROWER and the CITY agree as follows:
<br /> 1. Hold STATE harmless. The CITY shall, without expense or legal liability to the STATE, manage, operate,
<br /> and maintain the PROJECT continuously in an efficient and economical manner. To the extent permitted by law, the
<br /> BORROWER and the CITY agree to indemnify and hold the STATE harmless from any liability incurred by the STATE as
<br /> a result of the STATE'S interest in the CONTRACT RIGHTS relating to the PROJECT facilities.
<br /> 2. Authority to contract. The BORROWER and the CITY warrant tha k , ••verning bodies of each have
<br /> complied with all statutory and other requirements and each have duly •-',' '-,,4 n re,; ce, which shall be
<br /> irrepealable during the life of this loan, enabling each to do the following:
<br /> a. The BORROWER and the CITY to enter into this contract w . T f
<br /> b. The CITY to fix and collect water user charges and fees sufficien p,?' • f e I n made under this
<br /> contract;
<br /> CITY OF FORT MORGAN, COLORADO, WATER
<br /> WORKS AND DISTRIBUTION ENTERPRISE Page 2 of 10 LOAN CONTRACT
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