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

. .
PROMlSSOR)( NOTE

Principal Amount:
Term:
Loan Contract:

$504,000
30 Years
#C153773

Interest Rate:
Loan Payment
Date:

5%
$32,785.92
~-0

,1997

1. fOR VALUE RECEIY'ED, the Town of Morrison ("BORROWER") promises to pay the State of Colorado
Water Conservation Board ("STATE"), the principal sum of $504,000 with annual payments of $32,785.92
based on the interest rate of 5% per annum on the outstanding principal balance for a term of 30 years,
or until paid in full, pursuant to Loan Contract #C153773 ("LOAN CONTRACT").

2. The first installment 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 thereafter 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 a
Deed of Trust, cover certain revenues, accounts and other property of the BORROWER. The LOAN
CONTRACT, Security Agreement and Deed of Trust 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 Agreement or Deed of Trust 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 7% per annum
from the date of default. '

7. The BORROWER, any guarantor, and any other person who is now or 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 attorney fees. In the event of any bankruptcy or similar proceedings, costs of
collection shall include all costs and attorney 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 governed in all respects by the laws of the State of Colorado.

A

By

Town AdministratorrrownC erk

Appendix 2 to Loan Contract #C153773