C153769 Paid in Full Contract

• Contract/PO #: C153769
• Contractor Name: Agricultural Ditch and Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of
• Property Provisions herein,
f. To execute a deed of trust to convey a security interest to the STATE in the real property
described in the Collateral Provisions of this contract,
q0.
g. To execute a Security Agreement and a Conditional Assig f 4 r , act Proceeds to
convey a security interest to the STATE in the BORRO_' --'S inc. ; ale of water
carried primarily through the Welch Ditch pursua r4: •N. c 10 0 , ylaws of the
Golden Canal and Reservoir Company, and e.
h. To execute a Security Agreement and an Assignment of Depo a •'. n Security to
secure the assessment revenues pledged herein in accordance ' ' : Pledge of
Property-Provisions of this contract.
Said resolutions are attached hereto as Appendix 1 and incorporated hereir .
8. Attorney's Opinion Letter. Prior to the execution of this contract bye the STATE, the .
BORROWER shall submit to the STATE a letter from its attorney stating that it is the attorney's
opinion that the person signing for the BORROWER was duly elected or appointed and has
authority to sign such documents on behalf of the BORROWER and to bind the BORROWER;
that the BORROWER'S shareholders and board of directors have validly adopted resolutions
approving this contract; that there are no provisions in the BORROWER'S articles of
incorporation or by-laws or any state or local law that prevent this contractfrom binding the
BORROWER; and that the contract will be valid and binding against the BORROWER if entered
into by the STATE.
9. Promissory Note Provisions. The Promissory Note setting forth the terns Of'repayment
and evidencing this debt in the amount up to $300,000 (not to exceed 75°/ of actual Project
tA
costs) at the interest rate of 5.25% per annum for a term of thirty yea is attached as
Appendix 2 and incorporated herein.
a. Revision Of Promissory Note. In the event the BORROWER does not use all of the loan
funds for construction of the Project, the Promissory Note may be adjusted in accordance
with the Changes Provisions of this contract.
b. Interest During Construction. As the loan funds are disbursed by the STATE to the
BORROWER during construction, interest shall accrue at the rate of 5.25% per annum. The
amount of the interest accrued during construction shall be calculated by the STATE and
the BORROWER shall repay that amount to the STATE either within ten (10) days after the
date the STATE determines that the PROJECT has been substantially completed, or, at the
STATE'S discretion, the amount shall be deducted from the final disbiirsement of loan
funds that the STATE makes to the BORROWER.
10. Changes. The STATE and the BORROWER may decrease the amount of th loan under this
contract or extend the time for completion of the PROJECT through a EVISION LETTER, �.
approved by the State Controller or his designee, in the form attached heret as Appendix 3.
The REVISION LETTER shall not be valid until approved by the State C,ntroller or such n.
assistant as he may designate. Upon proper execution and approval, the REVISION LETTER •
The Agricultural Ditch and Reservoir Company Page 5 of 14 Loan Contract