C153606 Contract

• Contract/PO #: C153606
• Contractor Name: Terrace Irrigation Company, The
• Contract Type: Loan
• Water District: 21
• County: Conejos
• Bill Number: HB 91-1006
• Loan Projects - Doc Type: Contract Documents

sufficient revenue to assure repayment of the project loan to the
State.

12. Provide the State with such periodic reports as the State
may require and permit periodic inspections of its operations and
accounts by a designated representative of the State.

13. Repay to the State the total sum of Three Million Eight
Hundred Forty-Six Thousand Four Hundred Eighty Dollars
($3,846,480), which includes the project loan amount with interest
at the rate of Five percent (5%) per annum, said repayment 1;0 be
made in constant annual installments of Ninety- Six Thousand One
Hundred Sixty-Two Dollars ($96,162) 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 succeeding the month in which the State
determines that the project has been substantially completed, and
yearly thereafter until the entire principal and interest sum shall
have been paid. Said installment payments shall be made payable to
the Colorado Water Conservation Board, payable at the office of
said Board in Denver, Colorado.

14. As security for the loan to be made to it by the State,
execute a warranty deed within thirty (30) days of the substantial
completion of the project that shall convey to the State the entire
intereset of the Contractor of the following:

The right-of-way easements heretofore acquired and all
appurtenant structures thereto or which will be acquired
by the Contractor for the conveyance of the irrigation
water which has heretofore been conveyed by means of the
mainstem canals of the Contractor heretofore known as the
"Terrace Main Canal II and the "Alamosa Creek Canalll.

15. 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
has repaid the loan in full under the terms of paragraph A.13.
above. The State shall be the sole insured of this policy. The
Contractor shall submit certificates of insurance evidencing such
insurance policies to the State at the signing of this contract.
Notices of renewals of said policies shall also be filed with the
State as they occur. 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.

16. Comply with the Construction Fund Program Procedures
attached hereto as Exhibit D and incorporated by reference herein.

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

18. Not sell, convey, assign, grant, transfer, mortgage,
pledge, encumber, or otherwise dispose of the project or any
portion thereof, so long as any of the annual installments required
by paragraph A.13. above remain unpaid, without the prior written
concurrence of the State.

B. 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, which costs the Contractor agrees to
reimburse to the State; (c) take possession of the project, repair,

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