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<br />POLICY NUMBER: 16 <br /> <br />CONSTRUCTION FUND AND SEVERANCE TAX TRUST <br />FUND PERPETUAL BASE ACCOUNT LOAN SERVICE <br />CHARGES <br /> <br />SUBJECT: <br /> <br />EFFECTIVE DATE: January 1, 2003 <br /> <br />POLICY: <br /> <br />The Colorado Water Conservation Board (CWCB) will charge <br />borrowers a service fee for loans and administrative functions <br />during the life of a loan from the Construction Fund and Severance <br />Tax Trust Fund Perpetual Base Account and amendments thereto, <br />pursuant to sections 37-60-119(2) and 37-60-121(1)(b)(IV), C.R.S. <br />(2001). The Board will !lJlllually review the loan service fee <br />beginning at their May 2004 meeting. <br /> <br />PURPOSE: <br /> <br />To establish a service fee schedule payable to the CWCB by <br />borrowers from the CWCB Construction Fund and Severance Tax <br />Trust Fund Perpetual Base Account. <br /> <br /> <br />APPLICABILITY: This policy and procedure ,shall apply to all loans from the CWCB _ <br />Construction Fund and Severance Tax Trust Fund Perpetual Base . <br />Account, amendments to lQan contracts and partial releases of loan <br />collateral. <br /> <br />PROCEDURE: <br /> <br />The following fees will be assessed on all loan contracts, <br />subsequent loan contract amendments, and partial releases of <br />collateral. <br /> <br />Loan Contracts - A serville fee of one percent (1%) of the total <br />loan amount will be chargpd upon completion of the loan contract. <br />The service fee will be ad~ed to the authorized loan amount at the <br />time of eefttrllet elleeUa~f1 substantial comoletion and will be <br />transferred into a CWCB ~perational account. In the event that the <br />borrower does not use i the . full loan amount authorized, an <br />adjustment will be made to the service fee to reflect the actual loan <br />amount. In no event shall the service fee exceed one percent (1 %) <br />of the actual loan amount; As an example, a loan contract will be <br />written for $505,000 for ia loan authorization of $500,000. The <br />borrower will receive $500,000 and the CWCB will receive $5,000 <br />to supplement its operatirlg budget. The borrower will then repay <br />the total $505,000 loan amortized in accordance with the <br />authorized terms. <br /> <br />Amendments - A serviqe fee of $1,000 will be assessed for <br />amendments processed ifor the benefit of the borrower and <br />necessary for the borrowqr's course of business, including, but not <br />limited to, those listed in ithe table below. The service fee shall be <br /> <br />e <br />