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<br />Promissory Note
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<br />Date F eM UP, ~ if J.. ,200J. Date of Completion m C/. 'j // 2. C? 0 I
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<br />1, FOR VALUE RECEIVED, the Woodchuck Ditch Company ("BORROWER") promises to pay the
<br />State of Colorado Water Conservation Board ("STAT~"), the principal sum of Thirty
<br />Thousand Dollars ($30,000) plus interest at the rate 0': 3,75% per annum for a term of
<br />twenty (20) years, pursuant to Loan Contract No, C150041 ("LOAN CONTRACT"),
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<br />2. Principal and interest shall be payable in equal installments of $2,158,86, with the first
<br />payment due and payable one year from the date that the State determines that the pn?ject
<br />is substantially complete, and annually thereafter until all principal, interest, and all' late
<br />charges, if any, have been paid in full. All principal, interest, and late charges, if any, then
<br />remaining unpaid shall be due and payable twenty (20) years thereafter.
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<br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to
<br />1313 Sherman Street, Room 721, Denver, Colorado 80203,
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<br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date,
<br />the State may impose a late charge in the amount of 5% of the annual payment
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<br />5. This Note may be prepaid in whole or in part at any time without premium or penalty, Any
<br />partial prepayment shall not postpone the due date of any subsequent payments or change
<br />the amount of such payments.
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<br />6, ,.;rr paymerts '?ceived shall be applied iirst to late charges, ii any, nax; ;0 a.:...;,'uo,u IIltereS!
<br />and then to reduce the principal amount.
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<br />7, This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER.
<br />The LOAN CONTRACT creates security interests in favor of the STATE to secure the prompt
<br />payment of all amounts that may become due hereunder, The security interests, evidenced
<br />by a Security Agreement, a Deed of Trust, and Assignment of Certificate of Deposit, cove'
<br />certain revenues and accounts and real property of the BORROWER. The LOAN CONTRAC",
<br />Security Agreement, Deed of Trust and Assignment grant additional rights to the STATE,
<br />including the right to accelerate the maturity of this Note in certain events,
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<br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or ~'1e
<br />Security Agreement or Deed of Trust or Assignment securing this Note occurs, the ST, TE
<br />may declare the entire outstanding principal balance of the Note, all accrued interest, ~nd
<br />any outstanding late charges immediately due and payable, and the indebtedness Shlll
<br />bear interest at the rate of 7% per annum from the date of default The STATE shall give the
<br />BORROWER written notice of any alleged default and an opportunity to cure within thi!":'
<br />(30) days of receipt of such notice belore the BORROWER shall be considered 'In default fa,
<br />purposes of this Promissory Note,
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<br />Appendix 2 to Loan Contract C150041
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