PROJC00207

• Contract/PO #: C153527
• Contractor Name: Overland Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SB 88-30
• Loan Projects - Doc Type: Contract Documents

EXHIBIT A

J>ESOLUTION OF

THE BOARD OF DIRECTORS OF

THE OVERLAND DITCH AND RESERVOIR COMPANY

WHEREAS, the Overland Ditch and Reservoir Company
(hereinafter reterred to as the "Company" or the "Contractor"),
a non-prof1t mutual ditch company organized pursuant to. the
laws of the State of Colorado desires to enter into a contract
to borrow money trom the State of Colorado through the Colorado
Water Conservation Board (hereinafter referred to as liThe
State"), for the purpose of prepaying the Company's outstanding
Small Project Loan from the United States Department of
Interior, Bureau of Reclamation (hereinafter referred to as the
"Bureau"); and

WHEREAS, pursuant to the provisions of C.R.S. S7-22-101(h)
the Company has author! ty to enter into a contract to borrow
money and incur liability in the name of The Overland Ditch and
Reservoir Company upon the .proper adoption of a resolution by
the Board of Directors; and

WHEREAS, pursuant to Article VI, Secti.on 2 of the By-Laws
and the general authority of C.R.S. ~7-42-104, the Company has
the authority to levy assessments for the purpose of operating
and maintaining the Overland reservoir dam and irrigation rlitch
System, and to make expenditures of money to protect the
interests of the Company shareholders, and to levy an assessment
for the purpose of discharging any lawful contract debt plus
interest; and

WHEREAS, pursuant to C.R.S. 537-60-'122(1) (b), the State is
authorized to loan monies to the Overland Ditch and Reservoir
Company to repurchase its loan from the United States Bureau of
Reclamation pursuant to 55301 of the Federal Budget
Reconciliation Act of 1987; PROVIDED that the Company as.sures
the repayment at the loan money plus interest; and

WHEREAS, the Company and the State have negotiated a
contract tor the loan of money to the Company, which contract
requires certain terms and conditions and complete repayment to
the State by the terms therein and requires the Company to take
all act~on necessary to assure repayment to the State ~ncluding;
the adoption of a resolut~on approving this contract; the levy
of assessments to assure repayment of the contract; and the
grant~ng of a security interest in such assessment revenues i.n
favor of the State; and the setting aside ot such assessment
revenues in a separate fund unavailable for other uses.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE OVERLAND DITCH AND RESERVOIR COMPANY at a rSl!Jular special
meeting as follows:

1. The Overland Ditch and
authorized to sign the attached
borrow $ 541.946.85
and to repay
$ 1.057.659.00
conditions stated therein
Company's outstanding loan

Reservoir Company is hereby
contract with the State to
in principal
total amount of
on the terms and
for the purpose of repurchasing the
obligation to the Bureau.

a

2.
secretary
behalf of

The president
of the Company
the Company.

(or the vice-president) and the
are authorized to sign the contract on

3. An assessment is hereby authorized to be levied in a
timely manner and in an amount sufficient to assure repayment to
the State of the loan according to the terms and conditions of
the contract. The Board of Directors shall include this

EXHIBIT A