Laserfiche WebLink
SECTION 5—SCHEDULE OF EXISTING DEBT <br /> No other debt, backed by collateral described in Section 6 below, exists. <br /> SECTION 6—LOAN SECURITY <br /> The SECURITY provided for this loan, as evidenced by the executed SECURITY AGREEMENT <br /> (Appendix 4) and DEED OF TRUST(APPENDIX 5) and incorporated herein, shall be a pledge <br /> of assessment revenues (backed by a assessment covenant) and an undivided one <br /> hundred percent (100%) interest in the Drop 5 Hydroelectric Facility as more particularly <br /> described in the attached DEED OF TRUST. <br /> SECTION 7—ADDITIONAL CONDITIONS&CONTRACT REQUIREMENTS <br /> CWCB and Borrower hereby acknowledge and agree that the distribution of loan <br /> proceeds will occur after the following additional conditions and contract requirements <br /> are met by BORROWER. <br /> 1. Execution of the Lease of Power Privilege Agreement (LOPP) <br /> 2. Execution of an agreement that provides payment to the Uncompahgre Valley <br /> Water Users Association form the Drop 5 hydroelectric revenues <br /> SECTION 8—ADDITIONAL PROVISION <br /> The permitted use of the proceeds of the loan shall be the furnishment of such proceeds <br /> to an entity owned by the Borrower, and whose sole purpose is to perform all obligations <br /> of Borrower under the Loan Contract so long as: (a) ownership of the entity shall fully be <br /> vested in the Borrower; (b) the sole purpose and, therefore, the only permitted activities <br /> of the entity shall be consistent with the Loan Contract; and (c) so long as Borrower <br /> continues, without interruption, to perform all its duties, obligations and responsibilities <br /> under the Loan Contract. <br /> SECTION 9—"CONSTRUCTION FUND PROGRAM" PROCEDURES FOR PROJECTS <br /> A. The BORROWER shall employ an engineer, registered in the State of Colorado to <br /> prepare plans and specifications for the PROJECT. <br /> B. Engineering contracts and the plans and specifications must be submitted to the <br /> CWCB staff for verification of compliance with the terms of this CONTRACT when <br /> available prior to bidding. Any modifications, to the plans and specifications that <br /> effect changes to the construction costs must be approved in writing by CWCB. <br /> C. For plans and specifications for all jurisdictional dams and reservoirs, as defined by <br /> § 37-87-105 C.R.S., the BORROWER shall provide a letter of approval from the State <br /> Engineer's Office prior to construction. <br /> D. The BORROWER shall notify CWCB of the bid opening date, time and location. <br /> CWCB staff may elect to attend the bid opening. <br /> Appendix 1 <br /> Page 2 of 4 <br />