CT2016-1987 Substantial Completion Letter

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PROMISSORY NOTE Date: October 14 , 2015 BORROWER: Fort Lyon Canal Company, a mutual ditch company and nonprofit corporation Principal Amount: $1,629,130 Interest Rate: 1.75% per annum Term of Repayment: 30 years Contract Number: CT2016-1987 Loan Payment: $70,263.98 Payment Initiation Date*: Aldir. 1 z 0/6 ,7 Maturity Date*: Afr, f :fie * Payment Initiation Date and Maturity Date fields are filled in after the project has been substantially completed. 1. FOR VALUE RECEIVED, the BORROWER promises to pay the Colorado Water Conservation Board ("CWCB"), the Principal Amount plus Interest for the Term of Repayment, pursuant to the LOAN CONTRACT and this PROMISSORY NOTE. 2. Principal and interest shall be payable in annual equal payments as set forth in "Loan Payment" above, with the first payment due and payable one year from the Payment Initiation Date (the date the CWCB determines that the project is substantially complete), and annually thereafter. All principal, interest, and late charges, if any, then remaining unpaid shall be due and payable on or before the Maturity Date. 3. Payments shall be made to the Colorado Water Conservation Board at 1313 Sherman Street, Room 718, Denver, Colorado 80203. 4. The CWCB may impose a late charge in the amount of 5% of the annual payment if the CWCB does not receive the annual payment within 15 calendar days of the due date. 5. This PROMISSORY NOTE may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment shall not postpone the due date of any subsequent payments or change the amount of such payments. 6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce the principal amount. 7. This PROMISSORY NOTE is issued pursuant to the LOAN CONTRACT between the CWCB and the BORROWER. The LOAN CONTRACT creates security interests in favor of the CWCB to secure the prompt payment of all amounts that may become due hereunder. Said security interests are evidenced by a SECURITY AGREEMENT and DEED OF TRUST, ("SECURITY INSTRUMENTS") Of even date and amount herewith and cover certain revenues, real property, water rights and/or Appendix 3 Page 1 of 2