C153521 Contract

• Contract/PO #: C153521
• Contractor Name: Grand Valley Water Users' Association
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Bill Number: SB 000
• Loan Projects - Doc Type: Contract Documents

WHEREAS. the Contractor finds that the prepayment discount
results in an advantageous loan refinancing opportunity. and
therefore it desires to obtain Construction Fund loan
assistance from the State to prepay its Interior loan; and

WHEREAS. the State finds that it is necessary to loan the
Contractor approximately thirty-five percent (35~) of the
amount of the outstanding loans to make it financially
possible for the Contractor to repurchase the loan and that the
Contractor has demonstrated its ability to repay by virtue of
its previous record with Interior and that a Construction Fund
loan to the Contractor is feasible for this stated propose and
in the pUblic interest; and

WHEREAS. the State has authority to enter this agreement
pursuant to section 37-60-119 and 37-60-122(1). CRS; and

WHEREAS. pursuant to section 37-60-120. the State is
required to assure repayment of loan funds by the Contractor;
and

WHEREAS. pursuant to the Contractor's Articles of
Incorporation. the Contractor has authority to contract to
borrow money provided that a Resolution be duly passed by the
Board of Directors and ratified by two-thirds (2/3) of the
shares represented by votes cast at an election called for that
reason and (has authority) to levy assessments assuring
repayment of the State according to the terms of the contract;
and

NOW. THEREFORE. in consideration of the mutual and
dependent covenants herein contained. it is agreed by the
parties hereto as follows:

A. The Contractor agrees that it shall:

l~ Use funds loaned by the Stat~ for the sole purpose of
repurChasing its small project loan obligation from Interior
before August 18. 1988. This loan shall not be used by the
Contr-actox .fo..r: any other purpose. In the event that repurchase
is not accomplished by August 18. 1988. the Contractor shall
immediately repay this loan amount to the State.

2. Prior to the execution of this contract. adopt a
resolution and conduct an election consistent with its Articles
of Incorporation to authorize the incurring of this debt. the
levy of assessments to repay the debt. and the execution of
security to assure repayment to the State.

3. Without expense to the State. manage. operate. and
maintain the project continUOUSly in an efficient and
economical manner. and assume all legal liability for such
management. operation. and maintenance. The Contractor agrees
to indemnify and hold the State harmless from any liability as
a result of the State1s interest in the project.

4. Pursuant to its Articles of Incorporation. continue its
service charges and levy assessments or adjust as necessary to
provide sufficient funds for adequate operation and
maintenance, emergency repair services. obsolescence reserves.