C153514 Contract

• Contract/PO #: C153514
• Contractor Name: Farmers Water Development Company
• Contract Type: Loan
• Water District: 60
• County: San Miguel
• Bill Number: SB 87-15
• Loan Projects - Doc Type: Contract Documents

11. Repay to the State the total principal sum of Seven
Hundred Thousand Dollars ($700,000). which includes the project
loan amount and the Sixty Thousand Dollars ($60.000)
feasibility report amount. together with interest at the rate
of five percent (5\) per annum. said repayment to be made in
constant annual installments of Forty Thousand Seven Hundred
Ninety-Six Dollars ($40,796) each, for forty (40) years, as
shown in Exhibit C. attached hereto and incorporated by
reference herein. which first installment shall be due and
payable on the first day of the month next Gucceeding the mo,nth
in which the State determines that the project has been
sUbstantially completed. and yearly thereaf~er until the entire
principal sum shall have been paid. However. in the event the
Contractor does not draw funds commencing on the date specified
in paragraph D,I,a. below, the obligation to repay shall be
postponed for the same number of months as the Contractor
delays in drawing funds. Said installment payments shall be
made payable to the Colorado Water Conservation Board. payable
at the offices of said Board in Denver. Colorado.

12. Pursuant to its By-Laws, assess. levy on, and collect
from its shareholders such service charges. water delivery
tolls and fees. and/or assessments as will ensure that the
payments for which paragraph B.ll above callS are timely made.

13. As security for the. loan to be made to it by the
State. execute a warranty deed within thirty (30) days of the
first advance of funds from the State as provided in paragraph
D.l.a. below which shall convey the Gurley Dam and Reservoir
with all appurtenances which are located in Water District 60,
Water Division 4. San Miguel County, Colorado. to the State.

14. Obtain and maintain general fire and hazard insurance
on the project in an amount not less than the outstanding
amount of the loan made by the State to the Contractor until
the Contractor ha6 repaid the loan in full under the terms of
paragraph B.ll. above. The State shall be the sole insured of
this pOlicy. The outstanding loan amount payable to the State
shall be reduced in the amount of any payments made to the
State under this insurance coverage. If onlY a portion of the
outstanding loan amount is paid to the State under this pOlicy,
the number of installment payments shall remain unchanged;
however. the amount of each payment shall be reduced.

15. Comply wi~h the Construction Fund Program Procedures
attached hereto as Exhibit D and incorporated by reference
herein.

16. Comply with the provlslons of section 37-60-120,
Colorado Revised Statutes, and any other applicable statutes.
procedures. requirements. rules. or regulations which the State
has.

17. Not sell. convey. assign. grant. transfer. mortgage.
pledge, encumber. or otherwise dispose of the project or any
portion thereof. 50 long as any of the annual installments
required by paragraph B.ll. above remain unpaid. without the
prior written concurrence of the State.

C. Upon default in the payments herein set forth to be made by
the Contractor. or default in the performance of any covenant
or agreement contained herein. the State. at its option. may:
(a) declare the entire principal amount then outstanding
immediately due and payable: (b) for the account of
the Contractor. incur and pay reasonable expenses for repair.
maintenance. and operation of the project herein described and
such expenses as may be necessary to cure the cause of default;
(c) take possession of the project, repair. maintain. and
operate or lease it; (d) act upon the security (described in
paragraph B.13. above) conveyed to the State; (e) take action

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