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<br />37-60-120(2) and (3) Colorado Revised Statutes. is amended to read: <br /> <br /> <br />Amendments to Allow Borrowers to Proceed with, Pre-construction Activities Prior to . <br />Contract Execution <br /> <br />(1) The state of Colorado shall have the ownership ~d control of such portions of said projects, <br />or shall take a sufficient security interest in property or take such bonds, notes, or other <br />securities evidencing an obligation, as will assure repayment of funds made available by <br />section 37-60-119, Any security interest in prop~rty t,aken under this subsection (1) maybe <br />perfected and enforced in the same marmer as security interests under article 9 oftitle 4, <br />C,R.S, The board is empowered to enter into contracts that are, in its opinion, necessary for <br />the maintenance and continued operation of such projects, <br /> <br />(2) The &ponsor of a projeet may not initiate or incar oosts for final designs and &peeifioatiol1s <br />for a projeet, nor award a eontraot for, proeeed with, Or in any fflaBfler iHCell" eosts ['Or <br />oOHstnlotioH of a ]3roj eet, uffiil seceh s]3oflsor has cOffi]3lied with all ]3foeedures ,mG <br />relluirements of :he board, If a sponsor fails to comply with the board's procedures and <br />requirements, the board may, at its discretion, withhqld or terminate all or a portion of the <br />board's financial contribution to or loan for a proj ect; notwithstanding the authorization of <br />the same by the general assembly, or the board may require such assurances from the project <br />sponsor as the board deems necessary in order to adequately protect the board's investment in <br />a proj ect. <br /> <br />(3) The board may adjust the authorized interest rate, extend the authorized repayment period for . <br />any project, and/or defer one or more annual payments if, in the board's opinion, the entity <br />requesting such adjustment, extension, and defelIDent demonstrates that it has encountered <br />significant and unexpected financial difficulties and that it has been duly diligent in its efforts <br />to comply with the repayment provisions of its contract with the board, <br /> <br />Discussion <br /> <br />Paragraph '(2) of 37-60-120 prevents a borrov<<er from doing any work before he has <br />complied with all the requirements of the Board, T)J.is language prevents a borrower from <br />proceeding with any pre-construction activities literally until a loan contract is executed, Many <br />times a borrower will proceed with design, right-of-way acquisition, and other pre-construction <br />work using its proj ect cost share money in order to expedite the proj ect schedule, The CWCB <br />staff realizes that time is of the essence with most projects and allows this activity to occur as if a <br />loan contract were in place, Allowing the pre-construction activity to proceed in parallel with the <br />contracting process prevents undue project delays and ip.creased costs, The Board's interests in <br />the project are secure based on the wording in the se<}ond sentence following the deleted first <br />sentence, <br /> <br />The addition of "and/or" in paragraph (3) is a grammatical clarification, <br /> <br />. <br /> <br />8 <br />