C153726 Paid in Full Contract

• Contract/PO #: C153726
• Contractor Name: Tremont Mutual Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

I. At its March 1996 meeting, the CWCB approved a Small Project Loan to the BORROWER to
be used to refinance the costs of the PROJECT in an amount not to exceed $27,000, at an interest
rate of 334% per annum for a duration of 10 years.
J. During the course of PROJECT construction, the BORROWER discovered that the PROJECT
costs were higher than originally anticipated and requested an additional $13,000 from the STATE.
The CWCB staff has reviewed the situation and concluded that the PROJECT still is financially feasible.
K. At its May 1996 meeting, the CWCB approved i , . • - loan to $45,000, which
amount is not to excced 75% of the total project cost, at - . i A` •s • a -rm of 20 years.
L. The BORROWER,the Snyder-Smith Ditch Coer-S ith ) and Pioneer Water and
Irrigation Inc. ("Pioneer") entered into an agreement 1 • : Agreement"), under
which Pioneer may run and deliver water through the BOR o ' d , de •mith's facilities for
a handling fee determined by the number of acre-feet run through t . ' , hich is paid on an
annual basis. The 1987 Agreement was recorded on March 14, 1987, i the Of ice of the Clerk and
Recorder of Morgan County in Book 891 at Page 338. The handling fee was raised in March 1993.
M. The STAw s'6S, by this contract, to loan money to the BORROWER for this PROJECT
upon mutually a* bb tlm�s and conditions.
NOW THEREF( "4t
�� cdei"ation of the mutual and depende t covenants contained,the
parties agree asifotic s:
, 0 t
A. The BORROWER agrees as follows:
1. BORROWER'S indemnification of the STATE. The BORROWER sha I, without expense or legal
liability to the STATE, manage, operate, and maintain the PROJECT conti uously in an efficient and
economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any
liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities.
2. BORROWER'S liability insurance. Upon execution of this contract and continuing until
complete repayment of the loan is made to the STATE, the BORROWER shall maintain commercial
general liability insurance with a company that is satisfactory to the STATE dovering the management,
operation, and maintenance of the PROJECT with minimum limits of$1,00q,000 combined single limit
for each occurrence and $2,000,000 general aggregate,including product-/completed operations and
personal injury.
Said general liability insurance shall name the STATE as additio al insured. A copy of a
certificate of said insurance and an additional insured endorsement mu-t be filed with the STATE.
Evidence of current insurance coverage is to be provided as renewals oc•ur. No loan funds shall be
advanced by the STATE without evidence of said current coverage. T roughout the life of this
contract, the STATE reserves the right to increase the above amount •f insurance so that said
amounts at a minimum correspond to the amounts established by th• Colorado Governmental
Immunity Act, now and as hereafter amended.
3. BORROWER'S authority to contract. The BORROWER shall, pursuan to its statutory authority,
articles of incorporation, and by-laws, have its shareholders and board of d rectors adopt resolutions,
irrepealable during the life of this loan, authorizing the President and S cretary, on behalf of the
BORROWER, to do the following:
a. Contract for this loan with the STATE, and to pay the indebtedness, and
Tremont Mutual Ditch Company Page 2 of 10 Loan Contract