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law that prevent this contract from binding the BORROWER; and that the contract will be valid and <br /> binding against the BORROWER if entered into by the STATE. <br /> 9. Promissory Note Provisions. The Promissory Note setting fcrth the terms of repayment and <br /> evidencing this loan in the amount of $308,000 at an interest rate of 4.21% per annum for a term <br /> of 30 years is attached as Appendix 2 and incorporated herein. <br /> a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan funds <br /> for construction of the Project, the Promissory Note may be adjusted in accordance with the <br /> Changes Provisions of this contract. <br /> b. Interest During Construction. As the loan funds are disbursed by the STATE to the <br /> BORROWER during construction, interest shall accrue at the rate of 4.21%. The STATE shall <br /> calculate the amount of the interest accrued during construction and the BORROWER shall <br /> repay that amount to the STATE either within ten (10) days after the date the STATE determines <br /> that the PROJECT has been substantially completed, or, at the STATE'S discretion, said interest <br /> shall be deducted from the final disbursement of loan funds that the STATE makes to the <br /> BORROWER. . <br /> C. Final loan amount. In the event that the final loan amount is less than the authorized loan <br /> amount, the STATE shall apply the remaining loan funds to prepayment of the loan if the <br /> remaining funds equal less than 10% of the authorized loan amount. If the remaining loan <br /> funds equal more than 10% of the authorized loan amount, the STATE may apply those <br /> funds to prepayment of the loan with the BORROWER'S consent, or the parties may execute <br /> a REVISION LETTER as described below to document the final loan amount. When applying <br /> any remaining loan funds to prepayment of the loan, the STATE shall reamortize the actual <br /> amount disbursed over a reduced term, with the annual payment amount remaining <br /> unchanged. <br /> 10. Changes. The parties may decrease the amount of the loan under this contract or extend the <br /> time for completion of the PROJECT through a REVISION LETTER, approved by the State Controller <br /> or his designee and the BORROWER, in the form attached hereto as Appendix 3. The REVISION <br /> LETTER shall not be valid until approved by the State Controller or such assistant as he may <br /> designate. Upon proper execution and approval, the REVISION LETTER shall become an <br /> amendment to this contract and, except for the Special Provisions of the contract, the REVISION <br /> LETTER shall supersede the contract in the event of a conflict between the two. The parties <br /> understand and agree that the REVISION LETTER may be used only for decreasing the final loan <br /> amount or to extend the time for completion of the PROJECT. In the event that the parties execute <br /> the REVISION LETTER to decrease the amount of the loan, the parties shall amend the Promissory <br /> Note and all documents executed by the BORROWER to convey security interests to the STATE as <br /> required by this contract to reflect the decreased loan amount. <br /> 11. Warranties. • rr <br /> > i <br /> a. The BORROWER warrants that, by acceptance of the loan mey-5t st ri to ie terms of this <br /> contract and by the BORROWER'S representation herein, the BORROWER shall be estopped <br /> from asserting for any reason that it is not authorized.ort4Vatep wpely fARe Iwn money to <br /> the STATE as required by this contract. <br /> } <br /> b. The BORROWER warrants that it has full power and authority to enter into this contract. The <br /> Greeley & Loveland <br /> Irrigation Company Page 5 of 13 Loan Contract <br />