CT2015-140 Substantial Completion Letter

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security interests are evidenced by: a SECURITY AGREEMENT of even date and amount and cover certain PLEDGED REVENUES, as defined in Appendix 3 attached to the LOAN CONTRACT for the GRANBY HYDROPOWER PROJECT. The LOAN CONTRACT and SECURITY AGREEMENT grant additional rights to the CWCB. a. Notwithstanding any other provision of the LOAN CONTRACT, any and all of the Enterprise's obligations under the LOAN CONTRACT, whether financial or otherwise, shall be payable solely from the revenues, income, rents and receipts earned by the Enterprise from or attributable to the ownership and operation of the Granby Dam Hydropower Project and are not payable from any other source whatsoever. Nothing herein shall be deemed to prevent the Enterprise from making any payments from any other legally available source. b. In no event shall the Enterprise be required to spend money from taxes in violation of Section 20(4) of Article X of the Colorado Constitution in the performance of its obligations under the LOAN CONTRACT or which would cause the Enterprise to lose its enterprise status as such status is defined in the Colorado Constitution. c. In addition, the Enterprise shall not be required to expend any funds or impair any assets of the Northern Colorado Water Conservancy District or Municipal Subdistrict, Northern Colorado Water Conservancy District in the performance of the obligations under the LOAN CONTRACT. The obligations of the Enterprise under the LOAN CONTRACT do not constitute a debt or indebtedness of the Northern Colorado Water Conservancy District or the Municipal Subdistrict, Northern Colorado Water Conservancy District within the meaning of any constitutional, charter or statutory provision or limitation, and shall not be considered or held to be a general obligation of the Northern Colorado Water Conservancy District or the Municipal Subdistrict, Northern Colorado Water Conservancy District. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Instruments securing this PROMISSORY NOTE occurs, the CWCB may declare the entire outstanding principal balance of the PROMISSORY NOTE, all accrued interest, and any outstanding late charges immediately due and payable, and the indebtedness shall bear interest at the rate of 7% per annum from the date of default. The CWCB shall give the BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this PROMISSORY NOTE. The BORROWER hereby agrees that if this PROMISSORY NOTE or interest thereon is not paid when due or if suit is brought, then it shall pay all reasonable costs of collection, including reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of collection shall include all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for attendance at meetings of creditors' committees or other committees. Appendix 2 Page 2 of 3