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I I I I I I I I I I I I I I I I I I I In summary, in July of this year, LAWMA will be asking the CWCB far a laan of enaugh maney to pay the October 15, 1995 down payment required by each of the contracts discussed above. Those am aunts are: 1. 2. 3. x-v Ranch and assaciated water rights 3 cfs of X-V Ditch water rights Manvel Canal shares .of stock $500,000 $17,200 $197.100 Tatalloan requested for 1995 C;;4,300) LA WMA will be back in front of the Board in 1996 to ask for a loan to pay the amaunts remaining an the tatal purchase price of each of the water rights discussed abave. It is important to recagnize that all .of the money requested for this year will ga taward down payments that are fully refundable. All of the money will be depasited directly inta escraw accaunts. If LAWMA chooses nat to clase, the maney will be returned ta LAWMA and fram LAWMA ta the CWCB. LAWMA would only need to come up with whatever additianal funds are necessary ta pay whatever interest is due. Thus, the collateral far the maney requested in 1995 is the money itself. Assuming LAWMA gets the additianal funds it will be requesting next year and is able to clase an these water rights, and further assuming that the laan requested this year will be rolled inta the loan for the additianal funds LAWMA will request in 1996, then, in the lang- term, the water rights themselves will provide the collateral necessary to support this laan. A detailed plan for lang-term repayment of the necessary laans will be presented separately by letter from LAWMA ta the CWCB. This same letter will address the ability and willingness .of LAWMA's members ta repay the CWCB laans. 33