PROJ00529

• Contract/PO #: C153785
• Contractor Name: Chipperfield Lane Ditch, Inc.
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Bill Number: SPL
• Loan Projects - Doc Type: Feasibility Study

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Section 5.

Delinquent Assessments and StoC~( For~eiture.

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A. Delinquency. I~ any stockholder does not pay his
assEssments within .thirty days after they become due and
payable, the Board o~ Directors may declare a for~eiture o~
such delinquent stock. Or, at the election o~ the Board o~
Directors may maintain an action to recover ar1Y such
assessments against any _such delinquent stockholder as a
matter o~ contract.

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B. For~eiture. If the Board o~ Directors decides to
~or~eit the shares o~ stock of any delinquent stockholder
for failure to pay assessments properly levied against such
stoC~(, the Board, at a regular or special meeting, shall
instruct the Secretary to make demand upon such delinquent
stockholder for the payment of the assessments due on his
stock. Such demand shall be in the form of a written or
printed notice, signed by the Secretary, specifying the
amount due, and such notice shall be served either in person
or by certi~ied mail, addressed to the address o~ record o~
such stockholder at least thirty days prior to the time when
such for~eiture is to take e~fect. After the expiration of
the period ~ixed in said notice, if the delinquent
stockholder still has not paid the assessments, the Board of
Directors at any regular or special m~eting, by resolution
entered in the minutes, may thereupon declare said stock
forfeited to the corporation. Thereupon such delinquent
former stockholder will be without any right or title as a
stockholder, or otherwise, in said corporation and all
rights to the ditch and water rights represented by said
stock shall cease and terminate and said corporation may
sell and reissue stock of the same amount and class to any
other person qualified to be a stockholder.

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e. Sale o~ For~eited Stock. I~ the Board of Directors
decides to sell the stock ~orfeited by a stockholder for
~ailure to pay assessments levied against such stock, a
motion to said ef~ect ~hall be entered upon the minutes of
the company at any regular or special meeting of the Board
o~ Directors. The company shall then order the sale of said
stock. Notice of such sale shall be published in a
neW5paper o~ general circulation, at Rifle, Colorado i~ such
paper is available, or otherwise in a paper of general
circulation in Gar~ield County, Colorado. Such stock shall
be advet-tised +Ot- thirty days and sold at public sale, but
only to eligible buyers, ~or the purpose o~ paying such
assessment. The proceeds of such sale shall ~irst be
applied to the payment o~ such assessment and the balance,
if 2ny~ shall be paid to the delinquent stockholder.

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