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BORROWER: THE DUKE DITCH COMPANY AGENCY NAME: COLORADO WATER <br /> REQUESTED LOAN AMOUNT: $90,000 CONSERVATION BOARD <br /> LOAN ORIGINATION FEE: $900 CONTRACT TYPE: LOAN/PRIVATE <br /> APPROVED LOAN AMOUNT: $90,900 CWCB CMS: 88645 CORE: CT2017-915 <br /> LOAN CONTRACT <br /> This contract ("CONTRACT" or "LOAN CONTRACT") is made between the State of <br /> Colorado for the use and benefit of The Department of Natural Resources, Colorado <br /> Water Conservation Board ("CWCB" or "State"), and The Duke Ditch Company, 503 <br /> North 2nd, Hotchkiss, Colorado, 81419 ("BORROWER"), a Colorado nonprofit corporation. <br /> FACTUAL RECITALS <br /> 1. CWCB authority exists in the law, and funds have been budgeted, appropriated and <br /> otherwise made available and a sufficient unencumbered balance thereof remains <br /> available for encumbering and subsequent payment of this CONTRACT; and <br /> 2. Required approval, clearance, and coordination have been accomplished from and <br /> with appropriate agencies; and <br /> 3. On March 16, 2016, the CWCB approved a loan request from the BORROWER for the <br /> Piping the Duke Ditch Project ("PROJECT") to replace the unlined ditch with polyvinyl <br /> chloride (PVC) pipe. The total estimated Project Cost is $749,374.00 The Total Loan <br /> Amount ("LOAN AMOUNT") of $90,900.00, which includes a one percent (1%) loan <br /> origination fee of$900, is payable over 30 years at an interest rate of 2.00%; and <br /> 4. The PROJECT SUMMARY, attached as APPENDIX 1, and incorporated herein contains <br /> BORROWER Information (Section 1), the PROJECT Description (Section 2), CWCB's <br /> authority for making this loan (Section 3), and CWCB Approval or Legislative <br /> Authorization (Section 4), identifying the amount of the loan and the terms of <br /> repayment. The PROJECT SUMMARY also contains sections on BORROWER'S debt, <br /> pledged revenues and property, procedures and eligible expenses. <br /> 5. The CWCB now desires, by this CONTRACT, to loan money to the BORROWER for this <br /> PROJECT upon mutually agreeable terms and conditions. <br /> THEREFORE, in consideration of the mutual and dependent covenants contained <br /> herein, the parties agree as follows: <br /> A. LOAN PROVISIONS <br /> 1. Loan Origination Fee. The LOAN AMOUNT shall include (1) the amount of the funds <br /> loaned by the CWCB to the BORROWER for the PROJECT and (2) a loan origination <br /> fee of one percent (1%) of the requested loan amount. In the event that the <br /> BORROWER does not use the full LOAN AMOUNT authorized, the parties shall amend <br /> this CONTRACT or exercise an OPTION LETTER (as outlined in section A.2. and <br /> attached as APPENDIX 2) to revise the LOAN AMOUNT including adjustment of the loan <br /> origination fee to reflect 1% of the actual LOAN AMOUNT disbursed to the BORROWER. <br /> Page 1 of 13 <br />