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<br />c. Duration. The repayment period of this loan shall be thirty (30) years.
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<br />d. Loan payment. The payments shall be 30 annual installments of $173,490.30, which amount
<br />includes principal and interest. The first installment shall be due and paya.ble one year from the
<br />date that the loan funds are issued to the BORROWER, and annually thereafter until the entire
<br />principal sum and any accrued interest shall have been paid. Installment payments are to be made
<br />payable to the CWCB at the address given tlelow.
<br />
<br />a. Prepaymant conditions. The BORROWER may prepay all or any of the loan at any time, without
<br />penalty. These payments will be applied first to any accrued interest and then to reduce the
<br />principal amount.
<br />
<br />b. Collection costs. If the principal or accrl!ed interest under this contract is not paid when due,
<br />the BORROWER agrees to pay all reasonable costs of collection, including reasonable attorney fees.
<br />In the event of any bankruptcy or similar proc;eedings, costs of collection shall include all costs and
<br />attorney fees incurred in connection with l'uch proceedings, including the fees of counsel for
<br />attendance at meetings of creditors' committees or other committees.
<br />
<br />5. 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 represent~tion herein, the BORROWER shall be estopped from
<br />asserting for any reason that it is not authorited or obligated to repay the loan money to the STATE
<br />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 />execution and delivery of this contract arld the performance and observation of its terms,
<br />conditions and obligations have been duly al!thorized by all necessary actions of the BORROWER.
<br />
<br />c. The BORROWER warrants that it has not employed or retained any company or person, other than
<br />a bona fide employee working solely for the BORROWER, .to solicit or secure this contract and has
<br />not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona
<br />fide employee, any fee, commission, percentage, gift, or 'other consideration contingent upon or
<br />resulting from the award or the making of this contract.
<br />
<br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this contract
<br />is not encumbered by any other deeds of trust to any party other than the STATE or in any other way.
<br />
<br />6. Collateral. Part of the security provided for this loan, as evidenced by the executed deed of trust
<br />attached as APPENDIX C and incorporated herein, shall be an undivided one hundred percent (100%1 interest
<br />in the following, hereinafter referred to as SECURITY:
<br />
<br />1) all of the real property, togerher with improvements, including all fencing and wells, situate, lying
<br />and being in the County of Weld and State of Colorado, described as follows: Section 8, Township 3
<br />North, Range 61 West of rhe 6rh Principal Meridian; and .
<br />
<br />2} all the right, title, interest, claim and demand which the BORROWER has in and to the oil, gas and
<br />other minerals, including all of its righrs to explore for and develop the same, lying in and under the
<br />following described rract of land situare in Weld County, Colorado: Section 8, Township 3 North,
<br />Range 61 West of the 6th Principal Meridian; and
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<br />3} all water and water righrs appurtenant to Secrion B, Township 3 North, Range 61 West of the 6th
<br />Principal Meridian, including, but not limited to, Well Permit Nos. 16644-FP, 17501-FP and 17502-FP,
<br />located in the County of Weld and State of ColorfJdo, and
<br />
<br />Morgan County Quality Water District
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<br />Page 3 of 9
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<br />Loan Contract
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