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<br />LOAN CONTRACT <br />lJindsor Reservoir and Canal Co. <br />~rgency loan <br /> <br />a. Authorizing the Borrower to contract for this loan debt, and authorizing <br />the President and the Secretary to pay the indebtedness on behalf of the <br />Borrower, and <br /> <br />b. Authorizing the Borrower to execute the deed of trust as security <br />required by the State, as specified in the Deed of Trust provisions of this <br />contract, and <br /> <br />c. Authorizing the Borrower to make and levy assessment(s) sufficient to <br />payoff this contract loan. pursuant to its terms and to discharge this lawful <br />indebtedness, and <br /> <br />d. Authorizing the Borrower to set aside this assessment revenue in a <br />special fund separate and apart from other Borrower revenues to assure <br />repayment of this revenue to the State, and <br /> <br />e. Authorizing the Borrower to sign a security interest in such assessment <br />revenues in favor of the State to secure the repayment. <br /> <br />Such order or resolution shall be attached hereto as Exhibit A and included herein <br />prior to the State performance under this contract. <br /> <br />6. (PROMISSORY NOTE PROVISIONS): <br /> <br />6a. (This Contract is a Promissory Note): Understand that this Contract is also <br />a promissory note for the repayment of funds loaned to the Borrower according to the <br />terms set forth herein. <br /> <br />6b. (Pay interest During Construction): Repay to the State interest during <br />construction, which will be calculated monthly at an equivalent rate of four and one <br />quarter percent (4.25%) per annum on each loan advance disbursed to the Borrower <br />during construction. The interest accumulated during construction shall be paid to the <br />State as a single lump sum on the first day of the month following the month that the <br />State determines that the project has been substantially completed. The actual interest <br />which will accumulate during construction is unknown and cannot be calculated until <br />the conclusion of construction. <br /> <br />6c. (Repay the Principal Amount, plus Interest): Repay to the State the <br />maximum principal sum allowed under this contract of Three Hundred Thousand <br />Dollars and no Cents ($300,000.00), not to exceed the am mount actually borrowed <br />under this contract, which is the project loan amount. If amount borrowed is the <br />maximum allowable amount of Three Hundred Thousand Dollars and no Cents <br /> <br />Page ~ of 13 Pages <br />