C150087 Contract

• Contract/PO #: C150087
• Contractor Name: Cedar Mesa Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

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PROMISSORY NOTE
Date: May 1, 2002 Date of Completion
1. FOR VALUE RECEIVED the Cedar Mesa Ditch and Reservoir Company (" BORROWER ")
promises to pay the State of Colorado Water Conservation Board ("CWCB"), the
principal sum of one hundred thousand Dollars ($100,000) plus interest at the rate of
three and one quarter percent (3.25%) per annum for a term of twenty (20) years,
pursuant to Loan Contract No. C150087 dated May 1, 2002 (" LOAN CONTRACT
2. Principal and interest shall be payable in equal installments of $6,877.89, with the
first payment due and payabie one year from the date that the CWCB determines
that the project is substantially complete, and annually thereafter until all principal,
interest, and late charges, if any, have been paid in full, with all such principal,
interest, and late charges, required to be paid within 20 years.
3. Payments shall be made to the Colorado Water Conservation Board at 1313
Sherman Street, Room 721, Denver, Colorado 80203.
4. If the CWCB does not receive the annual payment within 15 calendar days of the due
date, the CWCB may impose a late charge in the amount of 5% of the annual
payment.
5. This Note may be prepaid in whole or in part at any time without premium or penalty.
Any partial prepayment shall not postpone the due date of any subsequent
payments or change the amount of such payments.
6. All payments received shall be applied first to late charges, if any, next to accrued
interest and then to reduce the principal amount.
7. This Note is issued pursuant to the LoAN CotvrRacr between the CWCB and the
BoRROweR. The LoaN CoNTRa,c7 creates security interests in favor of the CWCB to
secure the prompt payment of all amounts that may become due hereunder. The
security interests, evidenced by a Security Agreement and a Deed of Trust, both of
even date and amount, cover certain real property of the BORROWER. Th0 LOAN
CONTRACT Security Agreement and Deed of Trust grant additional rights to the
CWCB, including the right to accelerate the maturity of this Note in certain events.
8. If any annual payment is not paid when due or any default under the LoAN CorvTRa.cT,
Secutity Agreement or Deed of Trust securing this Note occurs, the CWCB may
dec�are the entire outstanding principaf balance of the Note, all accrued interest, and
any outstanding late charges immediately due and payable, and the indebtedness
shall bear interest at the rate of 7°/a per annum from the date of default. The CWCB
shall give the BoRROw�R written notice of any alieged default and an opportunity to
cure within thirty (30) days of receipt of such notice before the BoRROwert shall be
considered in default for purposes of this Promissory Note.
9. Th2 BORROWER any guarantor, and any other person who is now or may hereafter
become primarily or secondarily liable for the payment of this Note or any portion
Appendix 2 to Loan Contract C150087