BOARD02456

• Board Meeting Date: 11/25/2002
• Description: CF Section - Changes to Existing Loans - Lower Arkansas Water Management Association - Loan Payment Deferral Request
• Board Meetings - Doc Type: Memo

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POLICY NUMBER: 10

LOAN PAYMENT DEFERMENT REQUESTS FROM THE
CONSTRUCTION FUND AND SEVERANCE TAX TRUST
FUND PERPETUAL nASE ACCOUNT

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SUBJECT:

EFFECTIVE DATE: November 24, 1997

POLICY:

Under the statutory authority of Section 37-60-120 (3) CRS, the
Colorado Water Conservation Board (CWCB) may, at its
discretion, consider a request for defennent of payment on an
existing loan from eith\lr the CWCB Construction Fund or the
Severance Tax Trust Fund Perpetual Base Account. Any request
for defennent of paymel1t on an existing loan will require either:
(1) the borrower to pay interest for the period in which the loan
payment is deferred or (2) calculation of a new loan amortization
schedule that provides for adding to the principal of the loan the
interest that accrues during the period in which the loan payment is
deferred. .

PURPOSE:

This policy allows the Board to maintain the financial integrity of
the Construction Fund and the Severance Tax Trust Fund Perpetual
Base Account while providing project sponsors an opportunity to
recover from periods of financial difficulties, drought, flood, or
other hardship beyond their controL

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APPLICABILITY: This policy and procedure apply to all loans from the CWCB
Construction Fund and Severance Tax Trust Fund Perpetual Base
Account.

PROCEDURE: Upon request for deferral of an annual loan payment, staff will
prepare a memorandum for presentation at the next regularly
scheduled Board meetiqg. The memo will include the reason(s)
for the deferral request, i the original loan and project infonnation,
loan re-payment history; and a staff recommendation including, if
applicable, a revised 10aA repayment schedule.

Approved by the CWCB
November 24,1997 Board Meeting
Agenda Item #15a

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