C-153757 PIF

• Contract/PO #: C-153757
• Contractor Name: Decker Lateral Company, The
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

g. 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
of this contract.
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 $100,000 at the interest rate of 4.25% per annum
for a term of thirty 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 th •. 4.25% per annum. The
amount of the interest accrued during construction shall I �' TATE and
the BORROWER shall repay that amount to the STATE either within ten (110 fter 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 he may
designate. Upon proper execution and approval, the REVISION LETTER shall become an
amendment to this contract and, except for the Special Provisions of the contract, the
REVISION LETTER shall supersede 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
final loan amount or to extend the time for completion of the PROJECT. In the event that the
parties execute the REVISION LETTER to decrease the amount of the loan, the parties shall
amend the Promissory Note and all documents executed by the BORROWER to convey
security interests to the STATE as required by this contract to reflect the decreased loan
amount.
The Decker Lateral Company Page 5 of 14 Loan Contract