PROJC01676 - Laserfiche WebLink

Home Browse Search

."~ Town of Rangely Emergency Loan Contract ':.. "'."- Such resolution shall be attached hereto as Exhibit A and included hereift'l2~.t~;rthe,State performance under this contract. ",. X ' '" '- '<'.' "" 6. (PROMISSORY NOTE PROVISIONS): 6a. (This Contract is a Promissory Note): The Borrower understands that this Contract is also a promissory note for the repayment of funds loaned to the Borrower according to the terms set forth herein. 6b. (pay interest During Construction): The Borrower shall repay to the State interest during construction, which will be calculated monthly at an equivalent rate of four and one half percent (4.5%) per annum on each loan advance disbursed to the Borrower during construction. The interest accumulated during construction shall be paid to the State as a single lump sum on the first day of the month following the month that the State determines that the project has been substantially completed. The actual interest which will accumulate during construction is u'nknown and cannot be calculated Wltil the conclusion of construction. '6c. (Repay the Principal Amount, plus Ir.ten's;-): The Borrower shall repay to the State the maximum principal sum allowed jlnder this contract of Thirty-Four Thousand Dollars and no Cents ($34,000.00), nottu .::xceed the amoWlt actually borrowed under this contract, which is the project loan amornt.. If amount borrowed is the maximum allowable amount of Thirty-Four Thousand Dollar~,~nd,~o Cents ($34,000.00), said repayment shall include the principal sum with inte;est at the rate of four and one half percent (4.5%) per annum, and shall be made in con~tu.t annual installments of Eighteen Thousand, One Hundred, and Fifty-Five Dollars and N;n~ty Two Cents ($18,155.92) each, for two (2) years, as shown in Exhibit B, attached l.e~et0 and incorporated by reference herein, which first installment shall be due and payable ('n the first day of the month, one year after the month that the State determines that tho:: project has been substantially completed, and yearly thereafter Wltil the entire principal sum and any accrued interest shall have been paid. Said installment payments shall be made payable to the Colorado Water Conservation Board, payable at the offices of said Board in Denver, Colorado. 6d. (No Prepayment Penalty): The Borrower may prepay the loan in full at any time, at the Borrower's option, for which there shall be no prepayment penalty. 6e. (Make Advanccd Principal Payments without Penalty): The Borrower shall have the right to prepay any part of the principal at any time without penalty. In the event of any prepayment, this Contract shall not be treated as in default with respect to payment so long as the unpaid balance of principal and interest is less than it would have been had the periodic payments been made as stated above. Page 2 of 13 Pages