C150100 Contract Paid in Full

• Contract/PO #: C150100
• Contractor Name: East Dillon Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

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3. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the
PROJECT in accordance with the terms of this contract shall be remitted to the CWCB
within 30 calendar days from notification from the CWCB of either (1) completion of the
PROJECT or (2) upon the determination by the CWCB that the PROJECT will not be
completed.
4. BORROWER'S Authority To Contract. The BORROWER warrants that it has full power
and authority to enter into this contract. The execution and delivery of this contract and
the performance and observation of its terms, conditions and obligations have been
duly authorized by all necessary actions of the BORROWER. The BORROWER held an
election on May 7, 2002, whereby its electors approved increasing the BORROWER'S
debt by up to $2,550,000 for the purpose of purchasing water rights and wells, as
shown on the Judges' Certificate of Election Returns for the BORROWER'S election,
which is incorporated herein by reference. The BORROWER'S authorizing resolution(s)
are attached as Appendix 3 and incorporated herein.
5. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the
BORROWER shall submit to the CWCB a letter from its bond counsel stating that it is the
attorney's opinion that
a. the contract will be duly executed by officers of the BORROWER who are duly elected
or appointed and are authorized to execute the contract and to bind the BORROWER;
b. the resolutions or ordinances of the BORROWER authorizing the execution and
delivery of the contract were duly adopted by the governing bodies of the
BORROWER;
c. there are no provisions in the Colorado Constitution or any other state or local law
that prevent this contract from binding the BORROWER; and
d. the contract will be valid and binding against the BORROWER if entered into by the
CWCB.
6. Pledge of revenues. The BORROWER irrevocably pledge F', •r purposes
of repayment of this loan, general revenues received from v. :ch year as
authorized by the BORROWER'S May 7, 2002 election : attached as
Appendix 3 and any other funds legally available to the BORROWER, i ount
sufficient to pay the annual payment due under t ' c `"'' g:• ! e u s").
Further, the BORROWER agrees to:
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a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
Pledged Revenues in an account separate from other BORROWER revenues, and
warrants that these revenues will not be used for any other purpose.
b. Establish Security Interest. The BORROWER has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Revenues. The CWCB shall have
priority over all other competing claims for said revenues, except for the liens of
the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt), of
the Project Summary, which sets forth the position of the lien created by this
contract in relation to any pre-existing lien(s).
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