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<br />" <br /> <br />law that prevent this contract from binding the BORROWER; and that the contract will be valid and <br />binding against the BORROWER if entered into by the STATE, <br /> <br />9, Promissory Note Provisions, The Promissory Note setting fcrth the terms of repayment and <br />evidencing this loan in the amount of $308,000 at an interest rate of 4,21 % per annum for a term <br />of 30 years is attached as Appendix 2 and incorporated herein, <br /> <br />a, Revision Of Promissory Note, In the event the Borrower does not use all of the loan funds <br />for construction of the Project, the Promissory Note may be adjusted in accordance with the <br />Changes Provisions of this contract. <br /> <br />b, Interest During Construction. As the loan funds are disbursed by the STATE to the <br />BORROWER during construction, interest shall accrue at the rate of 4,21%, The STATE shall <br />calculate the amount of the interest accrued during construction and the BORROWER shall <br />repay that amount to the STATE either within ten (10) days after the date the STATE determines <br />that the PROJECT has been substantially completed, or, at the STATE'S discretion, said interest <br />shall be deducted from the final disbursement of loan funds that the STATE makes to the <br />BORROWER, <br /> <br />c, Final IDan amount. In the event that the final IDan amount is less than the authorized loan <br />amount, the STATE shall apply the remaining loan funds to prepayment Df the loan if the <br />remaining funds equal less than 10% Df the authorized loan amount, If the remaining loan <br />funds equal more than 10% Df the authorized Joan amount, the STATE may apply those <br />funds to prepayment of the loan with the BORROWER'S consent, or the parties may execute <br />a REVISION LETTER as described below to document the final loan amount. When applying <br />any remaining loan funds tD prepayment of the loan, the STATE shall reamortize the actual <br />amount disbursed over a reduced term, with the annual payment amount remaining <br />unchanged. <br /> <br />10. Changes. The parties may decrease the amount of the loan under this contract or extend the <br />time for completion of the PROJECT through a REVISION LETTER, approved by the State Controller <br />or his designee and the BORROWER, in the form attached hereto as Appendix 3. The REVISION <br />LETTER shall not be valid until approved by the State Controller or such assistant as he may <br />designate, Upon proper execution and approval, the REVISION LETTER shall become an <br />amendment to this contract and, except for the Special Provisions of the contract, the REVISION <br />LETTER shall supersede the contract in the event of a conflict between the two, The parties <br />understand and agree that the REVISION LETTER may be used onlyfor decreasing the tlnalloan <br />amount or to extend the time for completion of the PROJECT, In the event that the parties execute <br />the REVISION LETTER to decrease the amount of the loan, the parties shall amend the Promissory <br />Note and all documents executed by the BORROWER to convey security interests to the STATE as <br />required by this contract to reflect the decreased loan amount. <br /> <br />11. Warranties. <br /> <br />a, The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of this <br />contract and by the BORROWER'S representation herein, the BORROWER shall be estopped <br />from asserting for any reason that it is not authorized or obligated to repay the loan money to <br />the STATE as required by this contract. <br /> <br />b, The BORROWER warrants that it has full power and authority to enter into this contract. The <br /> <br />Greeley & Loveland <br />Irrigation Company <br /> <br />Page 5 of 13 <br /> <br />Loan Contract <br />