C150040 Contract

• Contract/PO #: C150040
• Contractor Name: Otero Ditch Company
• Contract Type: Loan
• Water District: 17
• County: Otero
• Bill Number: EIA
• Loan Projects - Doc Type: Contract Documents

)

)

Promissory Note

Date S- -t/ ~

,2000

Date of Completion 5eh:.;e....b.,~ / , 7.. 00 /
, ,

1. FOR VALUE RECEIVED, Otero Ditch Company ("BORROWER") promises to pay the State of
Colorado Water Conservation Board ("STATE"), the principal sum of One Hundred Fifty-Five
Thousand Dollars ($155,000) plus interest at the rate of four percent (4%) per annum for a
term of thirty (30) years, pursuant to Loan Contract No. C150040 ("LOAN CONTRACT").

2. Principal and interest shall be payable in equal installments of $8,963.67, with the first
payment due and payable one year from the date that the State determines that)he project is
substantially complete, and annually thereafter until all principal, interest, and late charges, if
any, have been paid in full, with all such principal, interest and late chargesJ~quired to be'paid
within thirty years. '

3. Payments shall be made payable to the Colorado Water Conservation Soard ah,d mailed to
1313 Sherman Street, Room 721, Denver, Colorado 80203. '

4. If the STATE does not receive the annual payment within 15 calendar days of,the dUe date, the,
State may impose a late charge in the amount of 5% of the annual payment. '

5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any
partial prepayment shall not postpone the due date of any subsequent payments or change
the amount of such payments.

6. All payments received shall be applied first to late charges, if any, next to accrued interest and
then to reduce the principal amount. .

7. 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 that may become due hereunder. The security interests, evidenced
by a Security Agreement, a Deed of Trust, an Assignment of Certificate of Deposit and an
Assignment of Deposit Account as Security, cover certain revenues, accounts and real
property of the BORROWER. The LOAN CONTRACT, Security Agreement, Deed of Trust,
Assignment of Certificate of Deposit and Assignment of Deposit Account as Security grant
additional rights to the STATE, including the right to accelerate the maturity of this Note in
certain events.

8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the
Security Agreement, Deed of Trust, Assignment of Certificate of Deposit and Assignment of
Deposit Account as Security securing this Note occurs, the STATE may declare the entire
outstanding principal balance of the Note, all accrued interest, and any outstanding late
charges immediately due and payable, and the indebtedness shall bear interest at the rate of
7% per annum from the date of default. The STATE shall give the BORROWER written notice of
any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice
before the BORROWER shall be considered in default for purposes of this Promissory Note.

Appendix B to Loan Contract C150040 ,