PROJC00005

• Contract/PO #: C153721
• Contractor Name: Lyons, Town of
• Contract Type: Loan
• Water District: 5
• County: Boulder
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Contract Documents

Said generalliability insurance shall name the STATE as additional insured, A copy of a certificate of
said insurance and an additional insured endorsement must be filed with the STATE. Evidence of current
insurance coverage is to be provided as renewals occur. No loan funds shall be advanced by the STATE without
evidence of said current coverage, Throughout the life of this contract, the STATE reserves the right to
increase the above amount of insurance so that said amounts at a minimum correspond to the amounts
established by the Colorado Governmental Immunity Act, now and as hereafter amended.

7. BORROWER'S authority to contract. Pursuant to its election held November 7, 1995 and to its
statutory authority, the BORROWER has adopted an ordinance, which is irrepealable durin9 the term of this
contract, authorizing the Town Administrator and the Town Clerk to do the following on behalf of the
BORROWER:

a. Enter into and comply with the terms of this contract with the STATE;

b. Fix and collect water charges and fees sufficient to payoff the loan made under this contract and
establish a reserve debt service fund by making an annual deposit equivalent to one,tenth of an annual
payment every year for 10 years, and to replenish that fund anytime it is depleted;

'C, Set aside sufficient revenues each year to pay the annual installment in a special account, separate
and apart from other revenues of the BORROWER;

d. Establish a certificate of deposit account in the amount of one annua' loan payment as security for
the loan, and execute an assignment of certificate of deposit as described in Collateral Provisions of
this contract; and

e. Sign a security interest in the revenues pledged herein.

The BORROWER'S Ordinance is attached hereto as APPENDIX 1 and incorporated herein.

8. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the BORROWER shall
submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the contract will be
duly executed by officers of the BORROWER who are duly elected or appointed and. are authorized to execute
the contract and to bind the BORROWER; that the BORROWER'S November 7, 1995 election was duly conducted
in compliance with the Colorado Constitution and statutes; that the ordinances of the BORROWER authorizing
the execution and delivery of the contract were duly adopted by the BORROWER'S Board of Trustees; that there
are no provisions in the Colorado Constitution or any other state or local law that prevent this contract from
bindin9 the BORROWER; and that the contract will be valid and binding a9ainst the BORROWER if entered into by
the STATE.

9. Promissory note provisions. The BORROWER understands that this contract is also a promissory note
for the repayment of funds loaned accordin9 to the terms set forth herein,

a. Principal amount. The principal amount of the loan shall be the total amount of funds advanced
by the STATE to the BORROWER under the terms of this contract, not to exceed $280,500.

b. Interest rate. The interest on the principal shall accrue at the rate of five percent 15 %1 per
annum on all funds advanced to the BORROWER.

c. Duration, The repayment period of this loan shall be twenty 1201 years.

d, Loan payment. The payments shall be made in twenty (201 annual installments of Twenty-two
Thousand Five Hundred Eight Dollars and Five Cents ($22,508,05). which amount is principal and
interest. The first installment shall be due and payable one year after the STATE determines that
the PROJECT has been substantially completed, and yearly thereafter until the entire principal sum
and any accrued interest shall have been paid. Installment payments shall be made payable to the
CWCB at the address given hefein.

Tow.n of Lyons

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Loan Contract