C153792 Contract

• Contract/PO #: C153792
• Contractor Name: Weldon Valley Ditch Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Contract Documents

PROMISSORY NOTE

Principal Amount:
Term:
Loan Contract:

$188,000
20 Years
#C153792

Interest Rate:
Loan Payment:
Date:

3.5%
$13,227.88
October Ie,

.1997

1. fOR VALUE RECEIVED, The Weldon Valley Ditch Company ("BORROWER") promises to pay the State of
Colorado Water Conservation Board ("STATE"), the principal sum of $188,000.00 with annual payments of
$13,227.88 based on the interest rate of 3.5% per annum on the outstanding principal balance for a term of 20
years, or until paid in full, pursuant to Loan Contract #C153792 ("LOAN CONTRAC1").

2. The first loan payment 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 lIiereafter 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 interests, evidenced by a security agreement and by assignments, cover certain
revenues and accounts of the BORROWER. The LOAN CONTRACT, security agreement and assignments 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 agreements and/or assignments 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 8% per annum from the date of default.

7. The BORROWER, any guarantor, and any successor of the BORROWER who 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 attomey 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 govemed in all respects by the laws of the State of Colorado.

BORROWER: The Weldon Valley Ditch Company, a
Colorado nonprofit corporation

By - ~'~1~~g~:d

I :>

"''sE'A,L~'
Attest:
~,/! ~ p'
By I i<'---. ? / ...e ~ 4---..L:;:,_ /
, ' Corporate Se . retary

Appendix 2 to Loan Contract C153792