CT2016-1987 Contract

• Contract/PO #: CT2016-1987
• Contractor Name: Fort Lyon Canal Company
• Contract Type: Grant/Loan Combo
• County: Bent
• Loan Projects - Doc Type: Contract Documents

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BORROWER: FORT LYON CANAL AGENCY NAME: COLORADO WATER
COMPANY CONSERVATION BOARD
REQUESTED LOAN AMOUNT: $1,613,000 CONTRACT TYPE:LOAN/PRIVATE
LOAN ORIGINATION FEE:$16,130 CMS:83640/CORE: CT2016-1987
TOTAL LOAN AMOUNT:$1,629,130
LOAN CONTRACT
This contract ("CONTRACT" or "LOAN CONTRACT")) is made between the State of
Colorado for the use and benefit of The Department of Natural Resources, Colorado
Water Conservation Board ("CWCB" or "State"), and Fort Lyon Canal Company, 750
Bent Ave, Las Animas, Colorado 81054 ("BORROWER"), a mutual ditch company and
nonprofit corporation.
FACTUAL RECITALS
1. CWCB authority exists in the law, and funds have been budgeted, appropriated and
otherwise made available and a sufficient unencumbered balance thereof remains
available for encumbering and subsequent payment of this CONTRACT;and
2. Required approval, clearance, and coordination have been accomplished from and
with appropriate agencies; and
3. On September 17, 2015 (Date) the CWCB approved a loan request from the
BORROWER for the Replacement of the Horse Creek Flume ("PROJECT"). The total
estimated project cost is $2,188,000. The total loan amount of $1,629,130 which
includes a one percent (1%) loan origination fee of$16,130 is payable over 30 years
at an interest rate of 1.75%;and
4. The PROJECT SUMMARY, attached as APPENDIX 1, and incorporated herein contains
BORROWER Information (Section 1), the PROJECT Description (Section 2), CWCB's
authority for making this loan (Section 3), and CWCB Approval or Legislative
Authorization (Section 4), identifying the amount of the loan and the terms of
repayment. The PROJECT SUMMARY also contains sections on BORROWER'S debt,
collateral, procedures and eligible expenses.
5. The CWCB now desires, by this CONTRACT, to loan money to the BORROWER for this
PROJECT upon mutually agreeable terms and conditions.
THEREFORE, in consideration of the mutual and dependent covenants contained
herein, the parties agree as follows:
A. LOAN PROVISIONS
1. Loan Origination Fee. The amount of the loan (LOAN AMOUNT) shall include (1) the
amount of the funds loaned by the CWCB to the BORROWER for the PROJECT and (2)
a loan origination fee of one percent (1%) of the PROJECT amount. In the event that
the BORROWER does not use the full LOAN AMOUNT authorized, the parties shall
amend this CONTRACT or exercise an OPTION LETTER (as outlined in section A.3b.
and attached as APPENDIX 2) to revise the LOAN AMOUNT including adjustment of the
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