C153607L Contract

• Contract/PO #: C153607L
• Contractor Name: Trinchera Irrigation Company
• Contract Type: Loan
• Water District: 35
• County: Costilla
• Bill Number: SB 92-87
• Loan Projects - Doc Type: Contract Documents

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I

WHEREAS, the termination contract provides that the Contractor will repay to
the State the principal amount of Nineteen Thousand Three Hundred Twenty-Five
Dollars ($19,325) under the terms and conditions of that termination contract in
consideration of the State's partial financing of the feasibility report for the project
pursuant to the feasibility report contract; and

WHEREAS, the State now desires by this project contract to loan money for the
construction of said project upon mutually agreeable terms and conditions, subject to
the availability of funding for that purpose; and

WHEREAS, the State and the Contractor agree that the repayment of the
feasibility report funding shall be consolidated with the repayment of the project
construction loan; and

WHEREAS, pursuant to the Contractor's By-Laws, the Contractor has authority
to contract to borrow money provided that a Resolution be duly passed by the Board of
Directors and to levy assessments assuring repayment of the State according to the
terms of the contract; and

WHEREAS, pursuant to section 1 of chapter 32, Session Laws of Colorado 1987,
as amended by Section 6 of Chapter 33, Session Law of Colorado 1992, the State has
been authorized to loan One Million Dollars ($1,000,000) for construction of the
project, including the cost of the feasibility report.

WHEREAS, the Contractor or Borrower understands that this Contract is also a
promissory note for the repayment of funds loaned to the Borrower according to the
terms set forth herein,

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

A The State and the Contractor have previously entered into a termination contract,
attached hereto as Exhibit A, and a feasibility report contract, attached hereto as
Exhibit B. Exhibits A and B are incorporated by reference herein.

B. The Contractor agrees that it shall:

1. Employ an engineering firm (hereinafter referred to as the Consultant) to
prepare project plans and specifications for the project. Both the Consultant and the
project plans and specifications must be approved in writing by the State before
construction on the project can commence, For purposes of this paragraph,
"construction" includes any real estate and water rights acquisitions,

2, Contract for the construction of said project to a responsible and capable fum

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