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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Now, therefore, In conslderliuull uf Ihe various premises contained hcrein, and the loans
and advances made lIDd lU be made by CWCB and the RUS. and other good and viUUClble
considenlUull, I1le l-eceipt and sufficiency of which arc hercby IlCknowledged, the CWCB
and RUS lIl!fCC ISli Collows:

I. The CWCB will takc a 1st !len position on the shores of water. The RUS will !eke a
1 ~Ilieu position on rea! estate, distribution lines, transmission lines, and storage tanks.
TIle RUS will take 112nd lien position on the shares of water.

2. Thc CWCD lIDd RUS's interest and priority in and to the Project Revenues shall be on
II parity basis.

3. In the event that either the CWCB or the RUS, after an event of default under their
respective 10M documents, elects to accelerate the indebtedness ofthe ARWPI, CWCB
or RUS. as the case may be, shall provide as least 60 days advanced notice to the other of
its decision to so accelerate.

4. The eWeB and the RUS will not, without the express written consent of the other
!lgree to modify or otherwise change any part ofthe loan documents, or grant any
extension or renewal thereof or other indulgence with respect thereto.

S. The eWeB and the RUS may, at their ~ole discretion and option, cure any default of
the borrower under the.other party's loan documents. In the eVent that the eWCB, liner
an event of delimit under the eWeB Loan Documents, accelerates the inuebleulless of
the AR WPI, the CWCB agrees that the RUS may cure said default in full by PliY iug all
amounts then due and outQtanding; provided. however, that the Ooverrulleulueed Ilot pay
any interest above the eWCB note rate or any penalties assessed li~lIil1St the AR WPI.
Similarly, if the RUS elects not to cure the ARWPI's uefliull but to rely Oil its right of
redemption provided by 28 U.S.C. 2410, the CWCB agrees 10 accept the redemption
payment provided for therein less any interest aboye lhe CWCB note rate and any
penalties assessed against the AR WPI.

6. No advances for purposes other Lhwl lllXes, insurance or payments on other prior liens
will be made by either pllTly wilho~t the prior written consent of the othcr po.rty.

7. Should the RUS ubuJu utle to the project either by foreclosure or voluntary
conveyance, the CWCB will grant COllsent50 the RUS may transfer the project subject to
the CWCB luwl if ille CWCD' s Loan Documents prohibit ~ueh transfer without the
CWCB consellt; provided, howevcr, that o.ny sueh transfer must be to a governmental
emlty or an organization de3cribed in Seotion 50 I (e)(3) of the Internal Revenue Code ot"
1986, lIS amended and that it hIlS shown to the eWeB' s satisfaction that it can meet the
financial obligation of iUl outstanding loans of the AR WPI.