PROJ00544

• Contract/PO #: C153609
• Contractor Name: Conejos Water Conservancy District
• Contract Type: Loan
• Water District: 22
• County: Conejos
• Bill Number: SB 87-15
• Loan Projects - Doc Type: Contract Documents

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WHEREAS, the Contractor and the State Engineer have entered
into an operating agreement certified by the State Engineer to be
satisfactory to him for the State's use of the Reservoir for
Compact purposes. Such agreement is attached hereto as Appendix B
and is incorporated herein by this reference; and
WHEREAS, pursuant to §§37-45-118(n), 37-45-139, 37-45.1-104
and 37-45.1-106, C.R.S., the Borrower has authority to contract to
borrow money provided that a resolution has been duly adopted by
its Board authorizing repayment of the loan to the State according
to the terms of this Contract; and
WHEREAS, the Borrower understands that this Contract is also
a promissory note for the repayment of funds loaned by the State to
the Borrower according to the terms set forth herein; and
WHEREAS, the State understands that the repayment of the funds
loaned, including interest thereon, will come from revenues pledged
for the repayment thereof from water user or storage fees and that
this obligation does not constitute a debt of the District within
the meaning of any constitutional or statutory limitations; and
WHEREAS, it appears to the parties that with the creation of
a reserve fund, a security interest in the revenues pledged herein,
and the additional terms and conditions provided herein, the flow
of revenue to repay the obligation is reasonably secure.
NOW, THEREFORE,• it is hereby agreed that:
1. The State agrees to loan Three Hundred Fifty Thousand
Dollars ($350,000) and to grant One Hundred Thousand Dollars
($100,000) to the Contractor for the purpose of this Project
Contract. The total sum of Four Hundred and Fifty Thousand Dollars
($450,000) shall be delivered to the Contractor within thirty days
of the effective date of this Contract.
2. The State shall deliver $450,000.00 to the Contractor in
cash, electronic transfer funds, certified funds or a state
warrant.
3. The Contractor agrees and understands that §§37-60-119
through 37-60-122, C.R.S., require that the loan of money by the
State to the Contractor for this project be conditioned upon the
repayment of the loan to the State. The Contractor hereby agrees
to take any and all actions necessary to secure such repayment as
provided herein.
4. The State and the Borrower agree to include the repayment
of the sum of Fifty Thousand Dollars ($50,000) , which the State
previously agreed to loan to the Borrower under the terms of the
Computer Modelling Contract dated May 21, 1992, with the repayment
of the loan of Three Hundred Fifty Thousand Dollars ($350,000) made
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