BOARD02374

• Board Meeting Date: 11/20/2000
• Description: CF Section - Special Purpose Accounts - Construction Fund Loan Foreclosure Account - Proposed
• Board Meetings - Doc Type: Memo

STATE OF COLORADO

Colorado Water Conservation Board
APepartment of Natural Resources
~313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

e

Bill Owens
Governor

Greg E. Walcher
Executive Director

MEMORANDUM

Dan McAuliffe
CWCB Director
(Acting)

TO:

Colorado Water Conservation Board Members

FROM:

Mike Serlet, P.E.!JJ r
Chief, Water Su{~lanning and Finance Section

DATE:

November 13, 2000

SUBJECT:

Agenda Item #17c - November 20-21, 2000, Board Meeting
Water Supply Planning and Finance - Special Purpose Accounts
Construction Fund Loan Foreclosure Account - Proposed

.

Introduction

The Board has recently adopted a policy regarding the collections of delinquent loans
from CWCB Construction Fund and Severance Tax Trust Fund Perpetual Base (STTFPBA)
borrowers. The policy describes several courses of action that the Board may take in settling a
bad debt. The final course of action included in the policy is to refer the bad debt to the Attorney
General's Office to take appropriate legal action (including foreclosure) against the project
sponsor. This memo proposes establishing a special fund within the Construction Fund to
provide the financial resources and spending authority to cover the direct costs associated with
completing foreclosure proceedings against a delinquent CWCB Construction Fund or
STTFPBA borrower.

Background

The Board recently adopted (September 27, 1999) policy #3 - Construction Fund and
Severance Tax Trust Fund Perpetual Base Account Loan Delinquency, Loan Restructuring, and
Collection. The policy states that, "If the delinquency continues, and is at least one year past
due, staffwill recommend that the Board .....Refer the bad debt to Central Collections and/or the
. Attorney Generars Office to take appropriate legal action against the Project Sponsor. "