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<br /> c. Duration. The repayment period of this loan shall be thirty (30) years.
<br /> d. Loan payment. The payments shall be 30 annual installments of $173,490.30, which amount
<br /> includes principal and interest. The first installment shall be due and payable one year from the
<br /> date that the loan funds are issued to the BORROWER, and annually thereafter until the entire
<br /> principal sum and any accrued interest shall have been paid. Installment payments are to be made
<br /> payable to the CWCB at the address given below.
<br /> a. Prepa t, o ti t The BORROWER may prepay all or any of the loan at any time, without
<br /> penalty. .'a' ill be applied first to any accrued interest and then to reduce the
<br /> principa 'r' 4°t -
<br /> 1C
<br /> b. on p• ipal or accrued interest under this contract is not paid when due,
<br /> t WE r y reasonable costs of collection, including reasonable attorney fees.
<br /> In the ev nt n imilar proceedings,costs of collection shall include all costs and
<br /> attorney fees incurred in connection with such proceedings, including the fees of counsel for
<br /> attendance at meetings of creditors' committees or other committees.
<br /> 5. Warranties.
<br /> a. The BORROWER warrants that by acceptance of the loan money pursuant to the terms of this
<br /> contract and by the BORROWER'S representation herein, the BORROWER shall be estopped from
<br /> asserting for any reason that it is not authorized or obligated to repay the loan money to the STATE
<br /> as required by this contract.
<br /> b. The BORROWER warrants that it has full power and authority to enter into this contract. The
<br /> execution and delivery of this contract and the performance and observation of its terms,
<br /> conditions and obligations have been duly authorized by all necessary actions of the BORROWER.
<br /> c. The BORROWER warrants that it has not employed or retained any company or person,other than
<br /> a bona fide employee working solely for the BORROWER,-to solicit or secure this contract and has
<br /> not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona
<br /> fide employee, any fee, commission, percentage, gift, or other consideration contingent upon or
<br /> resulting from the award or the making of this contract.
<br /> d. The BORROWER warrants that the property identified in the Collateral Provisions of this contract
<br /> is not encumbered by any other deeds of trust to any party other than the STATE or in any other way.
<br /> 6. Collateral. Part of the security provided for this loan, as evidenced by the executed deed of trust
<br /> attached as APPENDIX C and incorporated herein, shall be an undivided one hundred percent (100%) interest
<br /> in the following, hereinafter referred to as SECURITY:
<br /> 1) all of the real property, together with improvements, including all fencing and wells, situate, lying
<br /> and being in the County of Weld and State of Colorado, described as follows: Section 8, Township 3
<br /> North, Range 61 West of the 6th Principal Meridian; and
<br /> 2) all the right, title, interest, claim and demand which the BORROWER has in and to the oil, gas and
<br /> other minerals, including all of its rights to explore for and develop the same, lying in and under the
<br /> following described tract of land situate in Weld County, Colorado: Section 8, Township 3 North,
<br /> Range 61 West of the 6th Principal Meridian; and
<br /> 3) all water and water rights appurtenant to Section 8, Township 3 North, Range 61 West of the 6th
<br /> Principal Meridian, including, but not limited to, Well Permit Nos. 16644-FP, 17501-FP and 17502-FP,
<br /> located in the County of Weld and State of Colorado, and
<br /> Morgan County Quality Water District Page 3 of 9 Loan Contract
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