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<br /> <br />~'-, <br />, <br /> <br />Promissory Note <br />Date FE.P>EI i A k> ~ 26 , 2000 Date of Substantial Completion J IA h e. 3 tJ. ;( O() / <br />. <br />1. FOR VALUE RECEIVED, The Dolores Water Conservancy District Water Activity Enterprise <br />("BORROWER") promises to pay the State of Colorado Water Conservation Board ("STATE"), the <br />principal sum of Seventy-Five Thousand Dollars ($75,000) plus interest at the rate of three and one- <br />half percent (3.50%) per annum for a term of five (5) years, pursuant to Loan Contract No. C150003 <br />("LOAN CONTRACT"). <br /> <br />2. The first payment of $16,611.10 shall be due one year from the date that the State determines that <br />the project is substantially complete, and annually thereafter until the entire principal sum and all <br />accrued interest shall have been paid in full. <br /> <br />3. Payments shall be made by the State cashing in one of five certificates of deposit, each in the <br />amount of $16,611.10, which the Borrower has made payable to and given possession of to the <br />Colorado Water Conservation Board. <br /> <br />4. This Note may be prepaid in whole or in part at any time without premium or penalty by the Borrower <br />requesting that any or all of the remaining certificates of deposit be cashed in by the State and <br />applied to the payment of any interest accrued and to principal reduction. Any partial prepayment <br />shall not postpone the due date of any subsequent payments or change the amount of such <br />payments. <br /> <br />5. All payments received shall be appiied first to accrued interest and then to reduce the principal <br />amount. <br /> <br />6. If any annual payment is not paid when due or any default under the LOAN CONTRACT, the STATE <br />may declare the entire outstanding principal balance of the Note, all accrued interest, and any <br />outstanding late charges immediately due and payable, and the indebtedness shall bear interest at <br />the rate of 7% per annum from the date of default. The STATE shall give the BORROWER written notice <br />of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice <br />before the BORROWER shall be considered in default for purposes of this Promissory Note. <br /> <br />7. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily <br />or secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note <br />or interest thereon is not paid when due or if suit is brought, then it shall pay all reasonable costs of <br />collection, including reasonable attorney fees. In the event of any bankruptcy or similar proceedings, <br />costs of collection shall include all costs and attorney fees incurred in connection with such <br />proceedings, inCluding the fees of counsel for attendance at meetings of creditors' committees or <br />other committees. <br /> <br />8. This Note shall be governed in all respects by the laws of the State of Colorado. <br /> <br />BORROWER: The Dolores Water Conservancy District <br />Water Activity Enterprise <br /> <br />By ~~lJ.]L~ <br /> <br />Donald W. Schwindt, President <br /> <br /> <br />By <br /> <br />Appendix C to Loan Contract C150003 <br />