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<br />- ~, <br />. '\ <br /> <br />PROMISSORY NOTE <br /> <br />Date December 8 ,1998 Date of Substantial Completion DeceHfSEfC. '2E, I qq8 <br /> <br />1. FOR VAl.UE RECEIVED, the Town ;f Georgetown Water and Sewer Activity Enterprise <br />("BORROWER") promises to pay the State of Colorado Water Conservation Board ("STATE"), the <br />principal sum of One Hundred Ninety Thousand Dollars ($190,000) plus interest at the rate of <br />five and one-quarter percent (5.25%) per annum for a term of thirty (30) years, pursuant to Loan <br />Contract No. C153738 ("LOAN CONTRACT'). <br /> <br />2. The first payment of $12,714.22 shall be due one year from the date that the State determines <br />that the project is substantially complete, and annually thereafter until the entire principal sum, all <br />accrued interest, and all late charges, if any, shall have been paid in full. <br /> <br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 <br />Sherman Street, Room 721, Denver, Colorado 80203. <br /> <br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the <br />State may impose a late charge in the amount of 5% of the annual payment. <br /> <br />5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial <br />prepayment shall not postpone the due date of any subsequent payments or change the amount <br />of such payments. <br /> <br />6. All payments received shall be applied first to late charges, if any, next to accrued interest and <br />then to reduce the principal amount. <br /> <br />7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. <br />The LOAN CONTRACT creates security interests in favor of the STATE to secure the prompt <br />payment of all amounts that may become due hereunder. The security interests, evidenced by <br />Security Agreements and a Deed of Trust, cover certain revenues, accounts and shares of stock <br />evidencing water rights of the BORROWER. The LOAN CONTRACT, Security Agreements and Deed <br />of Trust grant additional rights to the STATE, including the right to accelerate the maturity of this <br />Note in certain events. <br /> <br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the <br />Security Agreements or Deed of Trust securing this Note occurs, the STATE may declare the <br />entire outstanding principal balance of the Note, all accrued interest, and any outstanding late <br />charges immediately due and payable, without notice or demand, and the indebtedness shall <br />bear interest at the rate of 15% per annum from the date of default. The STATE shall give the <br />BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days <br />of receipt of such notice before the BORROWER shall be considered in default for purposes of this <br />Promissory Note. <br /> <br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become <br />primarily or secondarily liable for the payment of this Note or any portion thereof hereby agree <br />that if this Note or interest thereon is not paid when due or suit is brought, then it shall pay all <br />reasonable costs of collection, including reasonable attomey fees. In the event of any <br />bankruptcy or similar proceedings, costs of collection shall include all costs and attomey fees <br />incurred in connection with such proceedings, including the fees of counsel for attendance at <br />meetings of creditors' committees or other committees. <br /> <br />10. This Note shall be govemed in all respects by the laws of the State of Colorado. <br /> <br />Attest (S E A L ) BORROWER: Town of Georgetown Water and <br />Sewer Activity Enterprise <br /> <br />~ <br /> <br />/ <br /> <br /> <br />By <br /> <br />Appendix 2 to Loan Contract No. C153738 <br />