C153771 Contract

• Contract/PO #: C153771
• Contractor Name: Horse Creek Water Users Association
• Contract Type: Loan
• Water District: 17
• County: Crowley
• Bill Number: HCL
• Loan Projects - Doc Type: Contract Documents

"

RESOLUTION of the MEMBERS
of the HORSE CREEK WATER USERS ASSOCIATION

Concerning a loan in the amount of up to $825,000 from the State of Colorado Water Conservation
Board ("CWCB") to finance the purchase of certain water rights from the Box Springs Canal and
Reservoir Company and individual shareholders of the Box Springs Canal and Reservoir
Company, the engineering and legal costs of setting up and adjudicating an augmentation plan,
and the costs associated with obtaining operating agreements to facilitate said augmentation plan,
the members of the Horse Creek Water Users Association ("HC\,~~.JA") pdopted the following
resolutions at a meeting held on / / - d)S- . 1997 at u..t: h Colorado.
The members hereby charge that these resolutions shall be irrepealable for the term of the loan
and hereby authorize the board of directors to set and levy assessments in an amount sufficient to
pay the annual amounts due under this contract, and authorize the President and Secretary as
follows:

1. RESOLVED, to enter into and comply with the terms of a contract and promissory note with
the Colorado Water Conservation Board for a loan in the amount of up to $825,000 ("Loan
Contract") and to pay the indebtedness; and

2. RESOLVED, to pledge certain assessment revenues ("Pledged Revenues") and the HCWUA's
right to receive such assessment revenues from its members for repayment of the loan; and

3. RESOLVED, to place the Pledged Revenues in a special account separate and apart from
other HCWUA revenues; and

4. RESOLVED, to make annual loan payments in accordance with the promissory note; and

5. RESOLVED, to execute an Assignment of Deposit Account as Security and a Security
Agreement to secure the Pledged Revenues and the HCWUA's right to receive those
revenues; and

6. RESOLVED, to obtain a certificate of deposit to serve as collateral for the loan in the amount of
one annual loan payment ($35,691.46), and to execute an Assignment of Certificate of
Deposit; and

7. RESOLVED, to execute a security agreement and an Assignment of Escrow Account as
Security to convey a security interest to the CWCB in the loan funds contained in the escrow
account prior to closing on the water rights; and

8. RESOLVED, to execute and record deed(s) of trust to convey a security interest to the CWCB
in the water rights purchased with the proceeds of the loan; and

Adopted thiscR.5 day of #t/. 1997.

The Horse Creek Water Users Association

By

SEAL

An~~l
Sy~t..e#~ _____
{Norman Sum rs, Secretary-Treasurer

Appendix 1 to Loan Contract C153771