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<br />revenues collected beginning in Federal fiscal year 2012 Section 3(c)(3) requires the
<br />inclusion herein of provisions designed to minimize impacts on electrical power rates.
<br />8, The CWCB now desires, by this contract, to ioan money to the BORROWER for this
<br />PRO,j[=,CT upon mutually agreeable tenns and conditions,
<br />THEREFORE, in consideration of tt1e mutual and dependent covenants contained herein,
<br />the parties agl'ee as follows:
<br />A LOAN PROVISIONS
<br />
<br />1, Terms of Loan. The CWCB agrees to loan to the BORROWER an amount not to exceed
<br />the AUTHORIZED L.OAN AMOUNT at an interest rate of four and one-haif percent (4,5%) per
<br />annum for a repayment term of thirty (30) years, which term shail commence in 2012,
<br />The BORROWER agrees that it shall repay this loan in accordance with the Repayment
<br />Provisions of this contract
<br />
<br />2, Use of Loan Funds. The BORROWER agrees that no loan funds shall be used to exercise
<br />the power of eminent domain to acquire water rights,
<br />3, DISBURSEMENT SCHEDULE, The BORROWER shall submit to the CWCB written requests
<br />for loan disbursements that include a brief description of the PROJECT activities and costs
<br />to be covered by the disbursement. The eWCB sllal! disburse the requested loan funds
<br />within fifteen (15) days from the CWCB's receipt of the request
<br />
<br />4. REPAYMENT PROVISIONS.
<br />a, Interest shali accrue on the loan funds disbursed by the CWeB to the BORRO',vER at
<br />the rate of four and one-half percent (4,5%) per annum,
<br />b, The BORROWE>, shall repay to the CWCS the amount disbursed to the BmiROVVER,
<br />up to the principal sum of five million five hundred thousand dollars ($5,500.000), and
<br />interest. at the rate of four and one-flaif percent (4.S%) per annum for a term of thirty
<br />(30) years, with the thirty year repayment term commencing on October 1, 2012,
<br />This thirty year payment term may be modified by the BORROWER'S exercise of its
<br />option to not remit annual payment, set forth at section A,S herein, provided that the
<br />BORROWE~: shaH pay in full ail principal and interest due on this loan no iater than
<br />September 30,2057, Tile annual payment amount shail Lle based upon a thirty year
<br />repayment term,
<br />c. Payments by the BOI-<RO\/VER are contingent upon Federal funds being appropriated,
<br />budgeted and ott1erwise made available, Pursuant to 31 U.S,C,A, 3123, the
<br />BORROWER pledges its full faith and credit to repay this loan. and shall pay in full ali
<br />principal and interest due on this loan no later than September 30, 2057,
<br />d, The exact amount of the first annual payment shall be established by the C'vVCB and
<br />the 8c"q~()I.nfEq w~]! be not~f!e~ or. C~ before Octob.er 1. 2011. T~e C~^JCB 2.ne.!1
<br />establish the subsequent annual payment amounts ami the BORROWER will be
<br />notified on or before thirty days prior to the annual October is! due date, The initial
<br />payment shall be based on the terms of Paragraph 4,b with interest aCC1"uing from
<br />the date of disLlursement up through October 1, 2012, The estimateej initiai payment.
<br />based on a disbursement of five million five hundred thousand doilars ($5,500,000)
<br />on October 1, 2002, would be $50.1,785.20. Tile initial payment amount shall be
<br />based on the actual dates of disbursement. The subsequent payment amounts
<br />shall be based on any deferrals claimed by the BOf<ROWER
<br />
<br />Page 2 of 8
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<br />Loan Contract
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