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<br />AGENCY NAME: Water Conservation Board
<br />
<br />AGENCY NUMBER: PDA
<br />ROUTING NUMBER: 96PDA 0 (0 ;2.{,
<br />
<br />$ 3,000,000
<br />
<br />LOAN CONTRACT & PROMISSORY NOTE
<br />
<br />THIS CONTRACT, made this Ii .dayof 1996, by and between the
<br />State of Colorado for the use and benefit of the pepa ent 'of Natural Resources, Colorado Water
<br />Conservation Board (CWCB), hereinafter referred to as the S ATE, and Morgan County Quality Water District,
<br />hereinBfter referred to as the BORROWER and/or CONTRACTOR.
<br />
<br />
<br />FACTUAL RECITALS
<br />
<br />A. Authority exists in the law, and funds halle been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund Number 424,
<br />Organization YYYY, Appropriation 531, Program WTRC, Object Code 5120, Contract Encumbrance Number
<br />C153718.
<br />
<br />B. Required approval, clearance, and coordinaticln have been accomplished from and with appropriate
<br />agencies.
<br />
<br />C. Pursuant to the provisions of B 37-60-119 and 37-60-120, 15 C.R.S. (1990) the STATE is
<br />authorized to loan money for the construction of water projects for the benefit of the people of the STATE,
<br />provided that the BORROWER assures repayment of that money.
<br />
<br />D. The BORROWER is a duly constituted Colorado water district, formed pursuant to ~ 32-1-101 et sea.,
<br />C.R.S. (Supp. 1995), and located in Morgan and Washington Counties, State of Colorado.
<br />
<br />E. The BORROWER has applied to the STATE for a loan in the amount of $3,000,000 to be used to
<br />purchase the Hay Gulch Wells, which will supply 1,380 acre-feet of water annually. The purchase includes
<br />a tract of land consisting of 640 acres, more or less, the rights to all water from the wells located on the land
<br />and a perpetual lease for water from two wells currently operated by the BORROWER, at a total cost of
<br />approximately $3,132,500, and is hereinafter referred to as the PROJECT.
<br />
<br />F. The STATE reviewed a feasibility study conducted by George M. Underwood, Consulting Engineer,
<br />dated September 1995 and incorporated herein by reference, and, based upon the feasibility report, the STATE
<br />determined the PROJECT to be technically and financially feasible.
<br />
<br />G. The BORROWER conducted an election on November 7,1995, wherein the ballot issue of increasing
<br />the BORROWER'S debt for the purpose of acquiring water rights was submitted and approved as shown on the
<br />attached Notice of Election, attached hereto as APPENOIX A and incorporated herein.
<br />
<br />H. At its November 6, 1995, meeting, the CWCB approved a loan to the BORROWER in an amount not
<br />to exceed $3,000,000 at an interest rate of 4% per anr1um, and for a duration of 30 years.
<br />
<br />I. Pursuant to 1995 Colo. Sess. Laws, Section 1, Chapter 117, as amended by Senate Bill 96-153,
<br />Section 8, the Colorado General Assembly authorized tl'1e CWCB to loan to the BORROWER an amount not to
<br />exceed $3,000,000 to refinance the costs of the PROJECT.
<br />
<br />J. The BORROWER purchased all of the components of the PROJECT in December 1995.
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