CT2018-1960 Loan Contract

• Contract/PO #: CT2018-1960
• Contractor Name: Fort Lyon Canal Company
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Contract Documents

B. The Borrower warrants that it has not employed or retained any company or person, other
than a bona fide employee working solely for the Borrower, to solicit or secure this
Contract and has not paid or agreed to pay any person, company, corporation, individual, or
firm, other than a bona fide employee, any fee, commission, percentage, gift, or other
consideration contingent upon or resulting from the award or the making of this Contract.
C. The Borrower warrants that the Pledged Revenues and Pledged Property for this loan are
not encumbered by any other deeds of trust or liens of any party other than the CWCB or in
any other manner, except for the Existing Parity Loans which sets forth the position of the
lien created by this Contract in relation to any existing lien(s). Documentation establishing
the relative priorities of said liens, if necessary, is attached to the Project Summary and
incorporated herein.
18. CHANGE OF OWNERSHIP OF WATER SHARES DURING TERM OF CONTRACT.
If the interest rate for this loan is based on the CWCB's agricultural or blended agricultural and
municipal and/or commercial and/or industrial rates, the Borrower agrees to notify the CWCB of
any change of the ownership of the water rights represented by its shares from irrigation to
municipal or commercial or industrial use. The interest rate shall be revised when said change in
ownership would increase the original interest rate by 0.5% or more. The parties shall amend this
Contract including a revised Promissory Note, to effect said change in interest rate.
19. OPERATION OF PROJECT.
The Borrower shall, without expense or legal liability to the CWCB, manage, operate, and
maintain the Project continuously in an efficient and economical manner.
20. DISPUTE RESOLUTION
A. Initial Resolution
Except as herein specifically provided otherwise, disputes concerning the performance of
this Contract which cannot be resolved by the designated Contract representatives shall be
referred in writing to a senior departmental management staff member designated by the
State and a senior manager designated by Borrower for resolution.
B. Resolution of Controversies
i. Resolution of Controversies other than Loan Default
For any dispute not involving Borrower's default on the Loan, if the initial resolution
described in §20.A. fails to resolve the dispute within 60 Business Days, Borrower
shall submit any alleged breach of this Contract by the State to the Procurement
Official of the Colorado Department of Natural Resources as described in §24-101-
301(30), C.R.S. for resolution in accordance with the provisions of§§24-106-109, 24-
109-101.1, 24-109-101.5, 24-109-106, 24-109-107, 24-109-201 through 24-109-206,
and 24-109-501 through 24-109-505, C.R.S., (the "Resolution Statutes"), except that
if Borrower wishes to challenge any decision rendered by the Procurement Official,
Borrower's challenge shall be an appeal to the executive director of the Department of
Personnel and Administration, or their delegate, under the Resolution Statutes before
Borrower pursues any further action as permitted by such statutes. Except as
otherwise stated in this Section, all requirements of the Resolution Statutes shall apply
including, without limitation, time limitations, regardless of whether this Contract is
subject to the Colorado Procurement Code.
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Contract Number:CT2018-1960