C153664 Contract

• Contract/PO #: C153664
• Contractor Name: Fort Lupton, City of & Fort Lupton Water Utility Enterprise
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: HB 93-1273
• Loan Projects - Doc Type: Contract Documents

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, assets, nor otherwise adversely affect the Enterprise's ability to
'J; I perform during the term of this Contract.
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4. The Borrower warrants that both the City of Fort
~Lupton and the Fort Lupton Water Utility Enterprise have complied
with all statutory and other requirements and duly passed a
resolution by their respective Councils, authorizing the Borrower
to enter into this Contract with the State to borrow the principal
sum of the loan amount set forth in paragraph A.l; to fix and
collect water user charges and fees sufficient to payoff the loan
; made under this Contract; to set aside sufficient revenues each
, year to pay the annual installment in a special fund separate and
\ apart from other revenues of the Borrower; to sign a security
interest in the revenues pledged herein and in the Borrower's
interest in the Allotment Contract in favor of the State to secure
repayment; and to repay this loan to the State. The Borrower's
II Resolution is attached hereto as Appendix E and incorporated herein
by this reference. The actions of the Borrower adopting the
)Resolution and executing the security agreements are conditions
iprecedent to performance by the State under this Contract.
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5. The Borrower agrees and understands thatss 37-60-119
through 37-60-122, C.R.S., require that the loan of money by the
State to the Borrower for this project be conditioned upon the
repayment of the loan to the State. The Borrower hereby agrees to
take any and all actions necessary to secure such repayment as
provided herein.

The Borrower understands that this Contract is a
promissory note for the repayment of funds loaned by the State to
the Borrower according to the terms set forth herein.

6. The Borrower agrees to repay to the State the sum of
Four Million Two Hundred Thirty-Three Thousand Dollars
($4,233,000), as the principal amount of the construction loan,
together with interest on the construction loan calculated in
accordance with the interest rate and term of paragraph A.2 and to
pay interest during construction.

Payment of interest during construction will be
calculated monthly at an equivalent of Two percent (2%) per annum
on each loan advance disbursed to the Borrower during construction.
The interest accumulated during construction may be paid, at the
discretion of the Borrower, as a single lump sum at the time the
first installment for the construction loan is due or it may be
capitalized under the same terms as the construction loan. The
actual interest which will accumulate during construction is
unknown and cannot be calculated until the conclusion of
construction. The Contractor and the Borrower shall identify the
amount and the method of payment of interest accumulated during
construction through an amendment to this contract to be finalized
within three (3) months after first delivery of Project water to
the Borrower.

Repayment of principal and interest for the

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