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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NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE COMPANY at a special meeting that:

1 .

The DeWeese-Dye Ditch & Reservoir Company is authorized to
sign the attached contract with the State to borrow One
Hundred Six Thousand Dollars ($106,000) in principal and to
repay a total amount of IWO Hundred Forty-Seven Thousand One
Hundred Six Dollars & ~ighty Cents ($247,106.BO) on the
terms and conditions stated therein for the purpose of
repair and rehabilitation of the DeWeese-Dye Ditch.

2.

The President and the Secretary of the Company are
authorized to sign the contract on behalf of the Company.

An assessment is hereby authorized to be levied in a timely
manner and in an amount sufficient to assure repayment to
the State of the loan according to the terms and conditions
of the contract. This contract loan debt is for the purpose
of maintaining the DeWeese-Dye Ditch, and of protecting the
interests of the shareholders, and of discharging this
lawful contract debt plus interest. The Board of Directors
shall include this contract repayment expense in its annual
estimate of expenses and shall make any additional
assessments necessary to assure repayment to the State as
required by the contract, in the manner provided in said
Section 2 of the By-Laws.

In the event of any default in repayment to the State, as
determined in writing by the State, the Company is
authorized to immediately take any lawful action to cure
such default. The Company is also authorized to take any
other lawful action which may be required by the Articles of
Incorporation or By-Laws to properly execute this contract
and perform all the terms and conditions thereof in a timely
manner.

The Company is authorize~ to execute and perfect a security
interest in the form provided by the State in the revenues
resulting from the asses~ment(s) levied for the purpose of
repayment of the contract loan to the State. That security
interest shall be signed Dy the President and the Secretary.
That security interest sh~ll be deemed to include any future
assessment revenues obta~ned for repayment of the contract
loan. The Company shall insure that the State has priority
interest in such revenues_

The Company is authori~ed to establish a separate fund
account in the Company na~e and in the name of "the State of
Colorado, for the use ~nd benefit of the Colorado Water
Conservation Construction Fund" at a state or national bank
or savings and loan as~ociation insured by the federal
government, and to deposit in such account all revenues
resulting from the asses~ment(s) made to repay the contract
loan to the State, and to pay such monies to the State as

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