BOARD01862

• Board Meeting Date: 11/23/1998
• Description: CF Section - Special Purpose Accounts - Colorado River Recovery Program Loan Account - Additional Funds
• Board Meetings - Doc Type: Memo

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2.5

(SLCA-IP) firm power contractors and shall be structured to minimize impacts on electrical
power rates.
The revenues receiv~d by Western from the sale of electricity from SLCA-IP will be used to
repay the loan or loans to the CWCB Construction Fund.
Western shall repay the loan or loans,.including principal and interest, no later than October 31,
2057.
The funds loaned to Western may be provided pursuant to 37-60-119 C.R.S. and 37-60-120
C.R.8. that give the CWCB the authority to loan money for the benefit of the people of the state;
and specifically pursuant to the provisions of 37-60-122.9 C.RS. that gives the CWCB the
authority to loan money for endangered fish recovery program capital projects.

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2.6

2.7

3. Terms

3.1 Within one-year from the date the Act becomes a public law, the CWCB, Reclamation and
Western shall enter into a contract that shall include, but not be limited to, the following:
3.1.1 A provision or provisions specifying the amount of the loan, the interest rate, and the repayment .
period of the loan.
3.1.2 A provision or provisions stating that Western may repay the CWCB in one lump sum or in
periodic payments that include principle and interest. These provisions shall also establish a
procedure by which Western may elect to not remit a loan payment for the purpose of
m;n;m;:nng the impact ofloan repayment on power rates. This provision shall specify a date by
which Western must notify the CWCB of its intent to not remit a loan payment, and shall provide
that interest shall continue to accrue to the loan and that late charges shall not apply;
3.1.3 A provision or provisions indicating the basis for concluding that no collateral or security
interests are required to assure repayment of the loan.
3.1.4 A provision or provisions indicating that the CWCB, Reclamation and Western shall adhere to
all applicable federal, state, and local laws and reguiationS that are in effect or may be established
throughout the term of the contract.

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