PROJ00496

• Contract/PO #: C153523
• Contractor Name: Fort Collins, City of
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Bill Number: SB 88-30
• Loan Projects - Doc Type: Contract Documents

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WHEREAS, the City is authorized by Council action and without an
elect i on to enter into loan agreements const i tut i ng general or speci a 1
obl igations of the City for water purposes pursuant to Colarado
Const itut i on art. XI, sec 6, Colorado Const itut i on art. II, sec. 6, and
City Charter Art. V, Sections 20.2 and 20.3; and

WHEREAS, the Bond Ordina~ces reserve the right of the City to
secure, without restriction, any obligations payable from the net revenues
of the City's water system equally and ratably with the Bonds; and

WHEREAS, there has been filed with the City Clerk a form of loan
agreement (the Loan Agreement) to be executed by the Board and the City;
and

WHEREAS, the Cauncil desires ta authorize the appropriate
officers of the City to execute the Loan Agreement.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO, AS FOLLOWS:

Section 1. Aooroval of Loan Aoreement: Execution: Chanoes. The
form of the Loan Agreement is hereby approved. The Mayor and the City
Clerk are hereby authorized and directed to execute the Loan Agreement and
affix the seal of the City thereto. The Loan Agreement is to be executed
in substantially the form hereinabove approved, provided that such form may
be completed, corrected or revised as deemed necessary or convenient by the
parties or their respective counsel. The Loan Agreement shall evidence a
general or speCial obligation .of the City to pay a principal sum sufficient
to enable the City to purchase the loan represented by the Contract and to
pay all costs incidental thereto but in no event more than $3,000,000
bearing interest at the rate of 5.00% per annum, maturing in not more than
40 years, and having such other termS as may be authorized by the Act.

Sect i on 2. Di soos i t i on of Proceeds. The praceeds recei ved by
the City under the Loan Agreement shall be applied by the City to purchase
the loan represented by the Contract and pay all costs incidental thereto
or to reimburse the City for funds previously advanced for said purpose.

Section 3. General Obl iaation Covenants. If the Loan Agreement
is secured by the full faith and credit of the City and by a pledge .of the
net revenues .of the City's water system, the foll owi ng provi s ions shall
apply:

The principal and interest ta become due under the Loan Agreement
in the years 1988 and 1989 shall be advanced from any revenues or funds of
the City lawfully available therefor. For the purpose .of reimbursing any
such advance and also for the purpose of paying the principal and interest
as the same become due, the Council shall annually fix and certify a rate
of 1 evy for ad valorem taxes to the 80ard .of County Commi ss i oners of
Larimer County, Colorado, which, whe~ levied on all of the taxable property
in the City in each of the years immediately prior to the years in which
such principal and interest become due, will raise ad valorem taxes
sufficient to make such reimbursement and to pay such principal and
interest as the same become due. In the event any of said levies shall