CT2016-2005 Contract

• Contract/PO #: CT2016-2005
• Contractor Name: Lower Poudre Augmentation Company
• Contract Type: Loan
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

BORROWER: LOWER POUDRE AGENCY NAME: COLORADO WATER
AUGMENTATION COMPANY CONSERVATION BOARD
REQUESTED LOAN AMOUNT: $450,000 CONTRACT TYPE: LOAN/PRIVATE
LOAN ORIGINATION FEE: $4,500 CWCB CMS:83649/CORE:CT2016-
TOTAL LOAN AMOUNT: $454,500 2005
LOAN CONTRACT
(STANDARD CONTRACT—WAIVER#160—APPROVED NOVEMBER 10,2003)
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 Lower Poudre Augmentation
Company, 33040 Railroad Ave., Lucerne, Colorado 80646 ("BORROWER"), a Colorado
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 the CWCB approved a loan request from the BORROWER for
the Box Elder Ditch Water Rights Purchase ("PROJECT") to purchase water rights for
use in the Company's augmentation plan. The total estimated project cost is
$500,000. The total loan amount of$454,500 which includes a one percent (1%) loan
origination fee of$4,500 is payable over 30 years at an interest rate of 1.85%;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
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