PROJC00525

• Contract/PO #: C153767
• Contractor Name: River Oaks on the Roaring Fork Property Owners Association
• Contract Type: Loan
• Water District: 38
• County: Eagle
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Contract Documents

PROMlSSOR1t' NOTE

Principal Amount:
Term:
Loan Contract:

$16,000
10 Years
#C153767

Interest Rate:
Loan Payment:
Date:

4%%
$2J.046,99
3J

,1997

1. FOR VALUE RECEIVED. the River Oaks On The Roaring Fork Property Owners Association, Inc,
("BORROWER") promises to pay the Slate of Colorado Water Conservation Board ("STATE"), the principal sum of
$16,000 with annual payments of $2,046.99 based on the interest rate of 4Y-% per annum on the outstanding
principal balance for a term of 10 years, or until paid in full, pursuant to Loan Contract #C153767 ("LOAN
CONTRACT").

2. The first installment shall be due one year from the date the STATE determines that the PROJECT described in
the LOAN CONTRACT has been substantially completed, and annually thereafter until the entire principal sum and
any accrued interest shall have been paid in full.

3. All payments received shall be applied first to accrued interest and then to the retirement of the principal.
Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman
Street, Room 721, Denver, Colorado 80203.

4. This Note may be prepaid in whole or in part at any time without premium or penalty, with prepayments applied
first to any accrued interest and then to reduce the principal amount. Any partial prepayment shall not postpone
the due date of any subsequent payments or change the amount of such payments,

5. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN
CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts which
may become due hereunder. The security interest~, evidenced by a Security Agreement, an Assignment of
Certificate of Deposit, and an Assignment Of Deposit Account As Security, cover certain revenues and
accounts of the BORROWER. The aforementioned documents grant additional rights to the STATE, including the
right to accelerate the maturity of this Note in certain events.

6. If any payment of principal or interest is not paid promptly when due or any default under the LOAN CONTRACT or
the Security Agreement or Assignment Of Certificate of Deposit or Assignment of Deposit Account As Security
securing this Note occurs. the STATE may declare the entire outstanding principal balance of the Note, and all
accrued interest, immediately due and payable, without notice or demand. and the indebtedness shall bear
interest at the rate of 7% per annum from the date of default.

7. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or
secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest
thereon is not paid when due or suit is brought, then it shall pay all reasonable costs of collection, including
reasonable attomey fees, In the event of any bankruptcy or similar proceedings, costs of collection shall
include all costs and attorney fees incurred in connection with such proceedings. including the fees of counsel
for attendance at meetings of creditors' committees or other committees.

8. This Note shall be governed in all respects by the laws of the State of Colorado,

BORROWER: River Oaks On The Roaring Fork Property
Owners Association, Inc.

By ~~YJ~~

:~~

Appendix B to Loan ,Contract #C153767