Laserfiche WebLink
<br />f. The BORROWER to repay this loan to the STATE. <br /> <br />The TOWN'S ordinances Nos. 497 and 516, are attached hereto as Appendix 2 and incorporated <br />herein. The BORROWER'S ordinance No. 545 is attached hereto as Appendix 3 and incorporated <br />herein. The actions of the TOWN and the BORROWER adopting said ordinances, and executing the <br />necessary documents to convey the security interests required by this contract are conditions <br />precedent to performance by the STATE under this contract. <br /> <br />8. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the BORROWER <br />shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the <br />contract will be duly executed by officers of the TOWN and the BORROWER who are duly elected or <br />appointed and are authorized to execute the contract and to bind the TOWN and the BORROWER; that <br />the ordinances of the TOWN and the BORROWER authorizing the execution and delivery of the contract <br />were duly adopted by the governing bodies of the TOWN and the BORROWER; that there are no <br />provisions in the Colorado Constitution or any other state or local law that prevent this contract from <br />binding the TOWN and the BORROWER; and that the contract will be valid and binding against the TOWN <br />and the BORROWER if entered into by the STATE. <br /> <br />9. Promissory note provisions. The BORROWER understands that this contract is also a promissory <br />note for the repayment of funds loaned according to the terms set forth herein. <br /> <br />a. Principal amount. The principal amount of the loan shall be the total amount of funds <br />advanced by the STATE to the BORROWER under the terms of this contract, not to exceed <br />$2,542,500. <br /> <br />b. Interest rate. The interest on the principal shall accrue at the rate of four percent (4%) <br />per annum on all funds advanced to the BORROWER. <br /> <br />c. Duration. The repayment period of this loan shall be thirty (30) years. <br /> <br />d. Loan payment. The payments shall be made in thirty (30) annual installments of One <br />Hundred Forty-Seven Thousand Thirty-Three Dollars and Three Cents ($147,033.03), which <br />amount is principal and interest. The first installment shall be due and payable on the first <br />day of the month, one year after the month that the STATE determines that the PROJECT has <br />been substantially completed, and yearly thereafter until the entire principal sum and any <br />accrued interest shall have been paid. Installment payments shall be made payable to the <br />CWCB at the address given herein. <br /> <br />e. Interest during construction. Interest shall accrue at the rate of 4% on the funds that are <br />advanced by the STATE to the BORROWER during construction. The amount of the interest <br />accrued during construction shall be calculated by the STATE and the BORROWER shall repay <br />that amount to the STATE either within ten (10) days after the date the STATE determines that <br />the PROJECT has been substantially completed, or, at the STATE'S discretion, the amount shall <br />be deducted from the final disbursement of loan funds that the STATE makes to the <br />BORROWER. <br /> <br />f. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time, <br />without penalty. These payments will be applied first to any accrued interest and then to <br />reduce the principal amount. <br /> <br />Town of Johnstown Water Activity Enterprise <br />& Town of Johnstown Page 5 of 14 <br /> <br />Loan Contract <br />