Laserfiche WebLink
<br />f <br /> <br />,/ <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />established by the Colorado Governmental Immunity Act This provision also requires <br />the borrower to provide documentation of such insurance and policy renewals <br />annually, (Paragraphs A.3, A.4, A.5 and A.6, pages 2-3) <br /> <br />9. Attorney's opinion letter. This provision requires a letter from the borrower's <br />attorney opining that the individuals signing the contract for the borrower are <br />authorized to bind the borrower to the terms of the contract, that the borrower's <br />stockholders or electorate have validly authorized the borrower to enter into the <br />contract, and that no provisions in the borrower's articles of incorporation, bylaws, or <br />charter, or any other state or local law prevent the contract from binding the borrower. <br />(Paragraph A.8, page 4) <br /> <br />10, Miscellaneous. Other provisions of the contract include: time for project <br />completion (establishes project completion date and how to request extension); <br />interest during construction (establishes rate of accrual and date due); changes <br />(establishes method for extending time for completion or reducing total loan amount <br />through execution of Revision Letter); warranties (borrower warrants that authorized <br />to enter into contract, that is obligated to repay loan, and that collateral not <br />encumbered by prior liens); periodic inspections (establishes CWCB staff's right to <br />inspect project and borrower's records to verify compliance with terms of contract); <br />and eligible expenses (lists project costs eligible for financing with loan proceeds), <br /> <br />In addition to these standard contract provisions, language is currently being developed <br />for raising the interest rate from an agricultural rate to the municipal rate on a loan in the <br />event the water use is changed from agricultural to municipal. This language is being <br />developed for Windsor Canal and Reservoir Company whose loan approval in January <br />1998 had this contingency, This language will be presented at a latter time for <br />consideration by the Board as to whether it would want a clause to allow adjusting the <br />interest rate as a standard contract provision or used only for specific instances. <br /> <br />STAFF RECOMMENDATION. This memo is for information purposes. Please let me know if <br />you have any questions or concerns regarding the standard contracting provisions, <br /> <br />Page 3 of 3 <br />