PROJ00454

• Contract/PO #: C153832
• Contractor Name: DeWeese-Dye Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 12
• County: Custer
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Feasibility Study

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SECTION 2. TRANSFER OF SHARES. Transfer of shares of
the corporation shall be made only on the stock transfer books of
the corporation by the holder of record thereof or by his legal
representative, who shall furnish proper evidence of authority to
transfer, or by his attorney thereunto authorized by power of
attorney duly executed and filed with the Secretary of the
corporation, and on surrender for cancellation of the certificate
for such shares. The oerson in whose name shares stand on the
books of the corporation. shall be deemed by the corporation to be
the owner thereof for all purposes. The transfer of shares of
the corporation shall occur only with the sale of real estate
property appurtenant to the shares in the corporation.

SECTION 3. FORFEITURE OF SHARES AND TER.'lINATION OF
WATER DELIVERY. Notice of the annual assessment determined shall
be provided shareholders not later than May 1st of the year of
determination. Assessments shall be due on July 1st of the year
of determination. Assessments which remain unpaid after July 1st
shall bear interest at the rate of 18% per annum. In the event
assessments remain unoaid, then on Aoril 1st of the year
follo~ing the date of assessment, the divider boxes serving"the
real pro~erty appurtenan~ to delinquent stares shall be
permanently closed. 3efore res~ption of delivery of water to
such real prope=ty, all celinquent assessments, interest thereon,
actual cost of closure and reopening of the divider boxes, and
any other costs incurred by the corporation in terminating
delivery shall be paid in full. Shares and the rights thereunder
shall be forfeited when the assessment payment, or any part
thereof, fees or penalties have not been paid in full on or
betore April lst of the year following the date of assessment.
Forfeited shares shall be held by the corporation, and shall not
counted to determine voting rights or the number of shares for a
quorum.

SECTION 4.
corporation shall not
one half (1/2) share.

DIV!SION OF SHARES. Shares of the
be divided into a denomination of less than

ARTICLE VII. OPERATIONS

SECTION 1. SRA-~HOLDERS RESPONSIBILITIES. Share-
holders have the right to delivery of water allocated to them for
the irrigation of their land within the prescribed times and
limits as established by the Board of Directors of the
corporation. Shareholders shall use every means within their
disposal to conserve water by closing their divider box when not
'in use and by maintaining ditches in good repair. 'Any share-
holder in non-compliance with those articles may be subject, to
termination of water deliverv at the discretion of the Board of
Dlroctors. .

9.