C153787 PIF

• Contract/PO #: C153787
• Contractor Name: Smith Irrigation Ditch
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

diversion structure as described in the Collateral Provisions herein, and
h. To execute a Security Agreement and an Assignment of Deposit Account as Security to
secure the revenues pledged herein in accordance with the Pledge of Property Provisions
herein.
Said resolutions are attached hereto as Appendix 1 and incorporated herein.
8. Attorney's Opinion Letter. Prior to the execution of this contract by the STATE, the BORROWER
shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the
person signing for the BORROWER was duly elected or appointed and has authority to sign such
documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S
shareholders and board of directors have validly adopted resolutions approving this contract; that
there are no provisions in the BORROWER'S articles of incorporation or by-laws or any state or local
law that prevent this contract from binding the BORROWER; and that the contract will be valid and
binding against the BORROWER if entered into by the STATE.
9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and
evidencing this debt in the amount of$50,000 at the interest rate of 3.5% per annum for a term of
twenty years is attached as Appendix 2 and incorporated herein.
a. Revision Of Promissory Note. In the event the Borrower does not use all of the loan funds
for construction of the Project, the Promissory Note may be adjusted in accordance with the
Changes Provisions of this contract.
b. Interest During Construction. As the loan funds are disbursed by the STATE to the
BORROWER during construction, interest shall accrue at the rate of 3.5% per annum. The
amount of the interest accrued during construction shall be calculated by the STATE and the
BORROWER shall repay that amount to the STATE either within ten (10) days after the date the
STATE determines that the PROJECT has been substantially completed, or, at the STATE'S
discretion, the amount shall be deducted from the final disbursement of loan funds that the
STATE makes to the BORROWER.
10. Changes. The STATE may decrease the amount of the loan under this contract or extend the
time for completion of the PROJECT through a REVISION LETTER, approved by the State Controller
or his designee, in the form attached hereto as Appendix 3. The REVISION LETTER shall not be
valid until approved by the State Controller or such assistant as hp maitdesignate. Upon proper
execution and approval, the REVISION LETTER shall become an � den tq t contract and,
except for the Special Provisions of the contract, the REVISI LE _44111 11 upersede the
contract in the event of a conflict between the two. The parties understand and agree that the
REVISION LETTER may be used only for decreasing the finafi10 4tnor;� croto ns e time for
completion of the PROJECT. In the event that the parties execute;the R; ISIN E i ER , decrease
the amount of the loan, the parties shall amend the Promissory Note:and ail 16=executed
by the BORROWER to convey security interests to the STATE as required by this contract to reflect
the decreased loan amount.
11. Warranties.
a. The BORROWER warrants that by acceptance of the loan money pursuant to the terms of this
contract and by the BORROWER'S representation herein, the BORROWER shall be estopped
Smith Irrigation Ditch Page 5 of 13 Loan Contract