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c. Duration. The repayment period of this loan shall be forty (40) years. <br /> d. Loan payment. If the amount borrowed is the MAXIMUM LOAN AMOUNT, payments would be made <br /> in forty (40) annual installments of TWO HUNDRED SEVENTY-SEVEN THOUSAND EIGHT HUNDRED <br /> SEVENTY-NINE Dollars&NINETEEN Cents ($277,879.19), which amount is principal and interest. The <br /> first installment shall be due and payable one (1) year after the STATE issues the loan funds to the <br /> BORROWER, and yearly thereafter until the entire principal sum and any accrued interest shall have been <br /> paid. Installment payments are to be made payable to the CWCB at the address given herein. <br /> e. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time, without <br /> penalty. These payments will be applied first to any accrued interest and then to reduce the principal <br /> amount. <br /> 5. Collateral. The security provided for this loan shall be the following: <br /> 1) Pledge of proceeds of any sale of the CITY'S and/or BORROWER'S interest in the Allotment Contract, <br /> secured by a Uniform Commercial Code Security Agreement and Financing Statement, incorporated herein <br /> as APPENDIX E, and <br /> 2) Pledge of the CITY'S and/or BORROWER'S CONTRACT RIGHTS under the Allotment Contract as described in <br /> the Remedies provisions of this contract, and secured by a Uniform Commercial Code Security Agreement <br /> and Financing Statement, incorporated herein as APPENDIX F. <br /> 3) Pledge of revenues, more fully described in the Pledge of Revenues Provisions of this contract, and <br /> secured by a Uniform Commercial Code Security Agreement and Financing Statement, incorporated herein <br /> as APPENDIX G. <br /> 6. Remedies for default. Upon default in the payments herein set.:,,, th to be made by the BORROWER , or <br /> default in the performance by the CITY or the BORROWER of any covenant o .i • ',e c•1 ained herein, the STATE, <br /> at its option, may: AA ,t, at' <br /> a. declare the entire principal amount and accrued interes . s .nding imme.lately due and payable; <br /> b. incur and pay reasonable expenses for repair, ma' e •„, -, `. i.. - - '.• of the PROJECT herein <br /> described and such expenses as may be necessary to cure Die au- tf 3•f 1:'1 <br /> ,h a <br /> c. enforce its security interest in exercising or temporarily assigning the CITY'S an. o . ROWER'S CONTRACT <br /> RIGHTS under the Allotment Contract. <br /> i) If the STATE does enforce its security interest in exercising or temporarily assigning the CITY'S and/or <br /> BORROWER'S CONTRACT RIGHTS under the Allotment Contract, the STATE (or the party to whom the STATE <br /> lawfully leases or temporarily assigns the CITY'S and/or BORROWER'S interest therein) shall fully perform <br /> the obligations and receive the benefits thereunder, subject to the terms of the Allotment Contract. The <br /> STATE agrees to exercise the CITY'S and/or BORROWER'S CONTRACT RIGHTS under the Allotment Contract <br /> in a manner that will ensure delivery of sufficient water to meet the actual needs of the CITY'S and/or <br /> BORROWER'S customers. The STATE agrees to apply revenues received as a result of its exercise or <br /> temporary assignment of such CONTRACT RIGHTS after payment of expenses authorized herein to the <br /> payment of principal and interest due hereunder with any excess payable to the BORROWER. The STATE <br /> agrees not to permanently transfer or assign all or any part of the CITY'S and/or BORROWER'S CONTRACT <br /> RIGHTS under the Allotment Contract. <br /> ii) The STATE further agrees to return to the CITY and/or BORROWER all CONTRACT RIGHTS under the <br /> Allotment Contract as soon as possible after the default has been cured and the City and/or BORROWER <br /> reasonably demonstrates that it is competent to comply with all the terms of the Allotment Contract. <br /> CITY OF FORT MORGAN, COLORADO, WATER <br /> WORKS AND DISTRIBUTION ENTERPRISE Page 4 of 10 LOAN CONTRACT <br />