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<br /> <br />" <br />~ ':1 <br /> <br />of up to $955,000, at an interest rate of 5% per annum for a duration of 30 years, $825,000 to <br />finance a portion of the PROJECT, not to exceed 75% of the cost of the PROJECT, and <br />$130,000 to refinance the existing short term CWCB Emergency Loan. <br /> <br />10. Pursuant to HB98-1189, Section 1 (d), the Colorado General Assembly authorized CWCB to <br />loan to the BORROWER an amount up to $955,000, hereinafter referred to as AUTHORIZED <br />LOAN AMOUNT. <br /> <br />11. The STATE acknowledges and understands that (a) the repayment of the funds loaned, <br />including interest thereon, will come from revenues pledged for the repayment thereof from <br />joint water and sewer system revenues on a parity with the obligations evidenced by the <br />CITY'S (1) loan agreement dated June 1, 1996, with the Colorado Water Resources and <br />Power Development Authority ("CWAPDA"), currently outstanding in the aggregate principal <br />amount of $1,265,000; (2) the loan agreement dated October 15, 1997 with the CWRPDA, <br />currently outstanding in the aggregate principal amount of $455,733.55; (collectively the <br />"Prior Obligations"). and (b) this obligation does not constitute a debt of the CITY within the <br />meaning of any constitutional or statutory limitations. <br /> <br />12. The Prior Obligations and the CWCB loan constitute first liens. <br /> <br />13. The BORROWER has a loan agreement dated June 27, 1996, with the State of Colorado <br />Department of Local Affairs, currently outstanding in the aggregate principal amount of <br />$40,012.95, which is payable with net revenues of the water and sewer system revenues. <br /> <br />14. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT <br />upon mutually agreeable terms and conditions, subject to the availability of funding for that <br />purpose. <br /> <br />THEREFORE, in consideration of the mutual and dependent covenants contained <br />herein, the parties agree as follows: <br /> <br />A. The BORROWER agrees as follows: <br /> <br />1. Construction Fund Program Procedures. The following items are procedures the <br />BORROWER shall follow during the construction phase of the PROJECT. <br /> <br />a. The PROJECT plans and specifications shall be prepared by an engineer, registered in the <br />State of Colorado, hereinafter referred to as the CONSULTANT, <br /> <br />b. The agreement between the BORROWER and the CONSULTANT and the plans and <br />specifications must be submitted to the CWCB staff for verification of compliance with the <br />terms of this contract. Any modifications to the plans and specifications must be <br />approved in writing by the CWCS staff. <br /> <br />c. For plans and specifications for all jurisdictional dams and reservoirs, as defined by S 37- <br />87-105 C.R.S. (1999), the BORROWER shall provide a letter of approvai from the State <br />Engineer's Office prior to construction. <br /> <br />d. The BORROWER shall contract for the construction of the work with responsible and <br />capable firms, hereinafter referred to as CONSTRUCTION FIRMS, which CONSTRUCTION FIRMS <br />shall be selected by the BORROWER and found acceptable by the CWCS staff before work <br /> <br />Page 2 of 14 <br />