C153739 Contract

• Contract/PO #: C153739
• Contractor Name: Aristrocrat Ranchettes Water Project, Inc.
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Contract Documents

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PROMISSORY NOTE

Principal Amount: $60U,OOO Interest Rale: 4 '/.%
Term: 30 Years Loan Payment: $35,758,95
Loan Contract: #C153739 Date: April 3, 1997
1, FOR VAJ.UE RECEIVED, the Aristocrat Ranchelle Water Project, Inc. ("BORROWER") promises to pay
the State of Colorado Water Conservation Board ("STATE"), the principal sum of $600,000 with
annual payments of $35.758.95 based on the Interest rate of 4Y-% per annum on the outstanding
principal balance for a term of 30 years, or until paid in full, pursuant to Loan Contract #C153739
("lOAN CONTRACT").
2. The first Installment shall be due one year from the date the STATE determines that the PROJECT
described In the lOAN CONTRACT has been substantially completed, and annually thereafter until the
entire prindpal sum and any accrued interest shall have been paid In full.
3. All payments received shall be applied first to accrued interest and then to the retirement of the
principal. Payments shall be made payable to the Colorado Water Conservation Board and mailed
to 1313 Sherman Street, Room 721, Denver, Colorado 80203.
4. This Note may be prepaid In whole or In part at any time without premium or penalty, with
prepayments applied first to any accrued Interest and then to reduce the principal amount. Any
partial prepayment shall not postpone the due date of any subsequent payments or change the
amount of such payments.
5. This Note is Issued pursuant to the lOAN CONrRAcT between the STATE and the BORROWER. The
lOAN CONTRACT creates security Interests In favor of the STATE to secure Ihe prompt payment of all
amounts which may become due hereunder. The security interests, evidenced by the following
documents: (1) security agreement dated April 3, 1997, securing BORROWER'S pledge of revenues;
and (2) security agreements and deeds of trust to be executed as title to each component of the Is
acquired by the BORROWER, cover certain revenues and real property of the BORROWER. The LOAN
CONTRACT, Security Agreements, and Deeds (If Trust grant additional rights to the STATE, including
the right to accelerate the maturity of this Nole In certain events.
6. If any payment of principal ar Interest is not paid promptly when due or any default under the lOAN
CONTRACT or the security agreements or deeds of trust, or assignment securing this Note occurs,
the STATE may declare the entire outstanding principal balance of the Note, and all accrued
interest. Immediately due and payable, withol,t notice or demand, and the Indebtedness shall bear
Interest at the rate of 15% per annum from the dale of default.
7. The BORROWER, any guarantor, and any o~her person who is now or may hereafter become
primarily or secondarily liable for the payment of this Note or any portion thereof hereby agree that
if this Note or interest thereon is not paid when due or suit is brought, then It shall pay all
reasonable costs of collection, Including reasonable attorney fees. In the event of any bankruptcy
or similar proceedings, costs of collection shall Include all costs and attomey fees InculTed in
connection with such proceedings, including the fees of counsel for attendance at meetings of
creditors' committees or other committees.
8. This Note shall be governed in all respects by the laws of the State of Colorado.

BORROWER: Aristocrat Ranchette Water Project, Inc.

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C L. Clamp, President

SEAL

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Appendix B to Loall Contract #C153739