PROJC00573

• Contract/PO #: C153519
• Contractor Name: Orchard Mesa Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Bill Number: SB 88-30
• Loan Projects - Doc Type: Contract Documents

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WHEREAS, the State has authority to enter this agreement

pursuant to section 37-60-119 and 37-60-122(1), eRS; and

WHEREAS, pursuant to section 37-60-120, the State is required

to assure repayment of loan funds by the Contractor; and

WHEREAS, pursuant to Contractor's statutory powers and as

authorized by a July 20, 1988 special election of the District

members, the Contractor has authority to contract to borrow money

provided that a Resolution be duly passed by the Board of

Directors of the District as authorized as
required by law and to levy ass~~\ss frt. ng repayment of the
State according to .the ter~.'.~f tl!~~ion fact and
il'''''4't!\ ~if, ;\., ~

NOW THEREFo~t~~on~~:~n of the mutual and dependent
covenants herein co~ed, it is agreed by the parties hereto as
follows:

A. The Contractor agrees that it shall:

1. Use funds loaned by the State for the sole purpose of
repurchasing its Rehabilitation and Betterment loan obligation

from Interior before August 18, 1988. This loan shall not be used

by the qontractor for any other purpose. In the event that

repurchase is not accomplished by August 18, 1988, the Contractor

shall immediately repay this loan amount to the State.

2. prior to the execution of this contract, adopt a

resolution consistent with its statutory powers and as approved by

a July 20, 1988 special election of the District members to

authorize the incurring of this debt, the levy of assessments to

repay the debt, and the execution of security to a~sure repayment

to the State.

3. Without expense to the State, manage, operate, and

maintain the project continuously in an efficient and economical

manner, and assume all legal liability for such

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