PROJ00064

• Contract/PO #: C153567
• Contractor Name: Grand Junction, City of
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SB 89-85
• Loan Projects - Doc Type: Contract Documents

(

C.
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and (b) consistent ~ith both
contract and the li~itations
which it is made.

the statutory purposes of this
of the statuto~y authority under

t. Upon completion of repayment to the State in the amount of
Four Hundred FoctY~Three Thousand Four Hundred ThirtY-Seven
Dollars and TwentY-Five Cents ($443,437.25), as set forth in
paragraph A.13. above of this contract. the State agrees to
convey to the Contractor all of the State's right, title. and
interest in and to the project and any other property described
in paragraph A.14. above by deed or other proper conveyance.

J. The Colorado Water Conservation Board. its agents and
employees. is hereby designated as the agent of the State for
the purpose of this contract.

K. The Contractor agrees and understands that sections
37-60-119 throuqh 37-60-122, CRS, as amended, require that the
loan of money by the State to the Contractor for this water
project be conditioned upon the repayment of the loan to the
State. The Contractor hereby agrees to take any and all
actions necessary to guarantee such repayment as provided
herein including, ~ithout beinq limited to. the actions
specified in this contract.

L. The Contractor agrees that the specific revenues to be
pledqed to repay tne State shall include, without being limited
to, an assessment ~evied for that purpose as authorized by
Resolution of the ~ontractor. The Contractor hereby pledges
such assessment re~enues to repay the State loan, warrants that
these revenues wil~ not be used for any other purpose. and
agrees to provide ~he State a perfected security interest in
the form provided 4y the State irrevocably pledginq such
revenues on the date of execution of this contract.

M. The Contractor warrants that it has duly passed. an
ordinance by its city council. as provided in its city charter.
authorizing: the ~ontractor to enter into this ~ontract with
the state to borro~ the principal sum of TWo Hundred Fifty
Thousand Dollars (t250,000); fixing utility rates which will
produce revenues s~fficient to pay off this contract loan
pursuant to its tetms and to disohatge this lawful
indebtedness: the settinq aside of this revenue in a special
fund separate and <<part from other Contractor revenues to
assure repayment Of this revenue to the State: and the signing
of a security intetest in such revenues in favor of the State
to secure the repayment. The passage of the necessary
ordinances by the Contractor and the security interest of the
Contractor are conditions precedent to State performance and
shall be attached hereto and included herein by this reference
(Exhibi t C).

)

N. The Contractor warrants that in the event of a default by
the Contractor in the repayment to the State. and upon written
notice thereof from the State. the Contractor shall. pursuant
to its city charter. immediately take all necessary actions to
levy an additional assessment and to pledge additional revenues
in sufficient amOUnt and in a timely manner to cure the default
and to repay the State as required by the contract. Such
additional revenues shall be deemed covered by the existing
security interest.

O. The Contractor warrants that the security int.erest executed
by the Contractor in favor of the State to secure repayment of
this loan is a valid security interest which shall be binding
against the Contractor and that the Contractor has p$rfected
this security interest such that the State has priority over
all other competing claims for such secured revenues.

P. The contractor warrants that by acceptance of the loan
money pursuant to the terms of this contract and by the

Paqe 2 of 10 Paqes