Laserfiche WebLink
SECTION 5—SCHEDULE OF EXISTING BONDS <br /> As of the date of the CWCB loan approval, the BORROWER has no other debt backed by the <br /> Water Activity Enterprise revenues. <br /> SECTION 6— Loan Security <br /> The SECURITY provided for this loan, as evidenced by the executed SECURITY AGREEMENT <br /> (Appendix 4), DEED OF TRUST (APPENDIX 5), and Stock Assignments (Appendix 6a, 6b, and 6c), <br /> incorporated herein, shall be a pledge of the District's Water Activity Enterprise revenues and an <br /> undivided one-hundred percent (100%) interest in Water Rights consisting of shares of Colorado <br /> Canal Company, Lake Meredith Reservoir Company, and Lake Henry Reservoir Company <br /> purchased with CWCB loan funds. This is in compliance with the CWCB Financial Policy#5 <br /> (Collateral). <br /> The Stock Assignments shall become effective solely in the event of an issuance by a Colorado <br /> District Court of an order authorizing a foreclosure sale of said shares of stock pursuant to Rule <br /> 120 of the Colorado Rules of Civil Procedure. <br /> a. The BORROWER shall have the certificate(s) for the shares issued in both the BORROWER'S <br /> and the CWCB's names, and shall give physical custody of the stock certificate(s) to the <br /> CWCB, which shall deposit the certificate(s) at the State Treasurer's Office for <br /> safekeeping. <br /> b. The BORROWER shall retain both the responsibility for paying assessments on and the <br /> privilege of voting said shares. <br /> SECTION 7-ADDITIONAL CONDITIONS&CONTRACT REQUIREMENTS <br /> Bridge financing for the purchase of the shares shall be paid in full within 30 days of receipt of <br /> CWCB funds. <br /> SECTION 8—"CONSTRUCTION FUND PROGRAM" PROCEDURES FOR WATER PURCHASE PROJECTS. <br /> A. The BORROWER shall submit, in writing, copies of the sales agreement and the appraisal <br /> for the WATER RIGHTS including, but not limited to, the name of the seller, cost, closing <br /> date, appraisal value, and support documentation prior to disbursal of loan funds. <br /> B. The BORROWER shall pay all of the expenses related to the PROJECT when such bills are <br /> due. <br /> SECTION 9—ELIGIBLE EXPENSES FOR WATER PURCHASE PROJECTS. <br /> A. Engineering associated with the feasibility report prepared as a requirement for this loan <br /> and associated with evaluating the suitability of the water rights for purchase by the <br /> BORROWER. <br /> B. Interest during completion of the PROJECT pursuant to Paragraph A.4 herein. <br /> C. Legal services for reviewing engineering services contracts and this CONTRACT. <br /> D. Purchase of the water rights. <br /> Appendix 1 <br /> Page 2 of 3 <br />