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<br />11/lU/97 MON 08:56 FAX 303 236 2847 <br /> <br />. <br /> <br />RD <br /> <br />-'. <br />- . <br /> <br />~003' <br /> <br />.. <br /> <br />2. Refinancinl1: Rural Development Debt: The loan contemplated by this letter is being <br />considered since the City is unable to finance the proposed project from its own resources or <br />through commercial credit at reasonable rates and terms. You must provide Rural <br />Development a resolution which includes an agreement to refinance the unpaid balance of <br />this loan upon request of the-Government if it appears that financing is available through <br />commercial credit at reasonable rates and terms. <br /> <br />3. Interim Financin~: You will be required to obtain interim credit for construction of this <br />project, if funds can be obtained at reasonable rates. <br /> <br />4. Securitv Reauirements: Security will consist of a Water Revenue bond pledging the <br />revenue generated from the facility. Payment on this loan will be made semi-annually. The <br />bond will be prepared in accordance with the provisions of RD Instruction 1780-0. <br /> <br />5, Title of the Property: You must obtain continuous and adequate rights-of-way and <br />interests in land needed for the construction and operation of the facility. The Consulting <br />Engineer shall prepare and furnish to you without additional compensation, three (3) copies <br />of a Map(s) showing the general location of needed construction easements, permanent <br />easements, other rights-of-way and the land to be acquired. Property surveys, property <br />plats, property descriptions, abstracting and negotiations for land rights shall be <br />aceomplished by you. Your attorney must prepare an opinion as to adequacy of the <br />easements, rights-of-way and interests in land necessary for the construction and operation <br />of the faeility. <br /> <br />n /' <br />~pwner Contribution: A contribution of $5,700,000 is requiIed for the development of the <br />proposed project. - <br /> <br />7. Other Funding: The City of Fort Morgan must provide evidence that it has, or will <br />reeeive prior to start of construction $13,500,000 in loan funds from the Colorado Water <br />Conservation Board and $17,500,000 in loans from the Colorado Water Resources and Power <br />Development Authority for the development of the proposed project. The loans will be <br />secured through revenue from the system and will be on a parity basis with the RUS funding. <br /> <br />8. Ox:g-anization: You must have the legal authority under the statutes of the State of <br />Colorado necessary to construct, operate and maintain the proposed facility, and to obtain <br />give security for and to repay the proposed loan. Your attorney must prepare an opinion as <br />to the legal authority. <br /> <br />9. Mana~ement Plan: You must have or develop an acceptable plan for the operation of the <br />facility. This plan must include such matters as user collection programs, connection charges, <br />rate schedules, collection policies, employee responsibilities and training, and other matters <br />which are necessary in the operation of the facility. <br /> <br />2 <br />