C153773 Cotract

• Contract/PO #: C153773
• Contractor Name: Morrison, Town of
• Contract Type: Loan
• Water District: 9
• County: Jefferson
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

authorizing the execution and delivery of the contract was duly adopted by the governing body of the
BORROWER; that there are no provisions in the Colorado Constitution or any other state or local law
that prevent this contract from binding the BORROWER; and that the contract will be valid and binding
against the BORROWER if entered into by the STATE.

9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and
evidencing this debt in the amount of up to $504,000 at an interest rate of 5% per annum for a term
of 30 years is attached as Appendix 2 and incorporated herein.

a. Revision Of Promissory Note. In the event the BORROWER does not use all of the loan funds
for construction of the PROJECT, the PromiSSOry Note may be adjusted in accordance with the
Changes Provisions of this contract. . .

b. Interest During Construction. As the loan funds are disbursed by the STATE to the BORROWER
during construction, interest shall accrue at the rate of 5%. The amount of the interest accrued
during construction shall be calculated by the STATE and the BORROWER shall repay that amount
to the STATE either within ten (10) days after the date the STATE determines that the PROJECT
has been substantially completed, or, at the STATE'S discretion, the amount shall be deducted
from the final disbursement of loan funds th<lt the STATE makes to the BORROWER.

10. Changes. The STATE may decrease the amount of the loan under this contract or extend the time
for completion of the PROJECT through a REVISION LETTER, approved by the State Controller or his
designee, in the form attached hereto as Appendix 3. The REVISION LETTER shall not be valid until
approved by the State Controller or such assistant as he may designate. Upon proper execution
and approval, the REVISION LETTER shall become an amendment to this contract and, except for the
Special Provisions of the contract, the REVISION LETTER shall supersede the contract in the event of
a conflict between the two. The parties understand and agree that the REVISION LETTER may be
used only for decreasing the final loan amount or to extend the time for completion of the PROJECT.
In the event that the parties execute the REVISION LETTER to decrease the amount of the loan, the
parties shall amend the Promissory Note and all documents executed by the BORROWER to convey
security interests to the STATE as required by this contract to reflect the decreased loan amount.

11. Warranties. The BORROWER warrants the following:

a. By acceptance of the loan money pursuant to the terms of this contract and by its
representations herein, the BORROWER shall be estopped from asserting for any reason that it is
not authorized or obligated to repay the loan money to the STATE as required by this contract.

b. The BORROWER has full power and authority to enter into this contract. The execution and
delivery of this contract and the performllnce and observation of its terms, conditions and
obligations have been duly authorized by a1l necessary actions of the BORROWER.

c. The BORROWER has not employed or retained any company or person, other than a bona fide
employee working solely for the BORROWER, to solicit or secure this contract. The BORROWER
has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a
bona fide employee, any fee, commission, percentage, gift, or other consideration contingent
upon or resulting from the award or the making of this contract.

d. The collateral identified in the Collateral Provisions of this contract is not encumbered by any

Town of Morrison

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