PROJC01351 - Laserfiche WebLink

Home Browse Search

provisions in the BORROWER'S articles of incorporation or by-laws or any 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 BORROWER understands that this contract is also a promissory note for the repayment of funds loaned according to the terms set forth herein. a. Principal amount. The principal amount of the loan shall be the total amount of funds advanced by the STATE to the BORROWER under the terms of this contract, not to exceed $632,000. b. Interest rate. The interest on the principal shall accrue at the rate of three and three- quarters percent (3 % %) per annum on all funds advanced to BORROWER. c. Duration. The repayment period of this loan shall be twenty (20) years. d. Loan payment. The payments shall be 20 annual installments of $45,480.05, which - amount includes principal and interest. The first installment shall be due and payable one year after the STATE determines that the PROJECT has been substantially completed, and annually thereafter until the entire principal sum and any accrued interest shall have been paid. Installment payments are to be made payable to the CWCB at the address given below. e. Interest during construction. Interest shall accrue at the rate of 3 % % on the funds that are advanced by the STATE to the BORROWER during construction. 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 that the STATE makes to the BORROWER. f. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time, without penalty. These payments will be applied first to any accrued interest and then to reduce the principal amount. g. Collection costs. If the principal or accrued interest under this contract is not paid when due, the BORROWER agrees to 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. 10. Collateral. Part of the security provided for this loan, as evidenced by the executed deeds of trust attached as Appendices B1 & B2 and incorporated herein, shall be an undivided one hundred percent (100%1 interest in the following, hereinafter referred to as SECURITY: the Vouga Reservoir site and the Vouga Reservoir storage rights of 920 acre-feet (Appendix B11. owned by the BORROWER, and approximately 680 acres of irrigated land in the Razor Creek Basin and the water rights associated said 680 acres (Appendix B21. owned by Remy Labrouche and Ruth A. Labrouche, all of which are more fully described in the attached deeds of trust. The property described in Appendix B1 is encumbered by a mortgage to the National Bank for Cooperatives ("CoBank") securing a loan from CoBank with a remaining balance of approximately $32,000. Said CoBank Mortgage was recorded in the Office of the County Clerk and Recorder of Saguache County, Colorado, on October 18, 1977 in Book 375 at Pages 42-51, Reception #222230, and was amended by a Mortgage Correction and Amendment Statement recorded in the same Office on December 11, 1989 in Book Vouga Reservoir Association Page 5 of 1 2 Loan Contract