PROJ00465

• Contract/PO #: C153530
• Contractor Name: DeWeese-Dye Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 12
• County: Custer
• Bill Number: SB 88-30
• Loan Projects - Doc Type: Feasibility Study

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WHEREAS, the DeWeese-Dye Ditch & Reservoir Company ("the
Company," or "the Contractor"), a non-profit corporation
organized pursuant to the law~ of the State of Colorado, desires
to enter into a contract to borrow money from the State of
Colorado through the Colorado Water Conservation Board ("the
State') for the purpose of repairing and rehabilitating its
existing ditch system known as the DeWeese-Dye Ditch for the
benefit of company shareholders; and

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WHEREAS, pursuant to the Articles of Incorporation and to
Article V Section No.s 3 and 4 of the By-Laws of the Company, the
Company has authority to enter into a contract to borrow money
and incur liability in the name of the DeWeese-Dye Ditch &
Reservoir Company if the contract is signed by it~ President and
its Secretary, and provided that a resolution by the Board of
Directors shall first be duly passed at a regular or a special
meeting of the Directors authorizing the negotiating for and the
obtaining of a loan by the Company by contract with the State;
and

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WHEREAS, pursuant to the Articles of Incorporation and to
Article V Section No. 2 of the By-Laws of the Company, the
Company has the authority to levy assessments for the purpose of
maintaining the DeWeese-Dye Ditch and Reservoir system, and to
make immediate expenditures of money to protect the interests of
Company shareholders, and to levy an assessment for the purpose
of discharging any lawful contract debt plus interest, and it is
the duty of the Board of Directors to make an estimate of Company
expenses for each year and to make an assessment covering such
expenses in the manner provided in said Section 2; and

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WHEREAS, pursuant to sections 37-60-119 and 37-60-120,
Colorado Revised Statutes, as amended, the State has the
authority to loan money to the Company by contract for the
purpose of repairing and rehabilitating the DeWeese-Dye Ditch
provided that the Company assures the repayment of the loan money
plus interest; and

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WHER~AS, the Company and the State have negotiated a
contract for the loan of money to the Company, which contract
requires certain terms and conditions and complete repayment to
the State by the terms therein, and requires the Company to take
all acts necessary to lawfully enter into this contract and incur
this liability and assure repayment to the State, including: the
adoption of a resolution approving this contract; and the levy
of asses$ments to assure reppyment of the contract; and the
execution of a security interest in such assessment revenues in
favor of the State; and the setting aside of such assessment
revenues in a separate fund unpvailable for any other uses.

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