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<br />AGENCY NAME: Water Conservation Board
<br />AGENCY NUMBER: PDA ~
<br />ROUTING NUMBER: ~ 2
<br />LOAN CONTRACT
<br />THIS CONTRACT, made this 1St day of February 2002, by and between the State of Colorado
<br />for the use and benefit of the Departmenf of Natural Resources, Colorado Water Conservation
<br />Board, hereinafter referred to as the CWCB and/or STATE, and Peopies Ditch Company, a Colorado
<br />nonprofit corpo~ation, 23738 Road 40, Sterling, Colorado, 80751 hereinafter referred to as the
<br />BORROWER afld/OC CONTRACTOR.
<br />FACTUAL RECITALS
<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund
<br />Number 486, Organization YYYY, Appropriation 010, GBL P049, Program WTRC, Object Code
<br />5881, Reporting Category: 0049, Contract Encumbrance Number C150049. ~
<br />2. Required approval, clearance, and coordination have been accomplished from and with
<br />appropriate agencies.
<br />3. Pursuant to the provisions of §§ 37-60- - 0, C.R.S. (1999) the ST,arE is authorized
<br />to loan money for the construction of r the benefit of the people of the State,
<br />provided that the borrower assures repa of that mon
<br />4. The BoRROWER is a duly constitute I a p ~ti ( ditch company formed pursuant
<br />to and governed by Article 42 of Titl , .S. ~o an Coun Stat
<br />~~~~ 9 ty, e of Colorado.
<br />5. A Small Project Loan Account was e a lished by § 37-60-122.7, C.R.S. (1999), which authorizes
<br />the CWCB to make loans of up to $100,000 without prior approval from the General Assembly if
<br />the CWCB determines that delay would result in undue hardship on the borrower.
<br />6. The BoRROwER has applied to the ST,4TE for a Small Project Loan in the amount of $43,000 to be
<br />used to construct a pipeline to replace the Borrower's washed-out ditch and diversion structure,
<br />hereinafter referred to as PRO~ECT, at a total cost of $75,000,
<br />7. The STATE has reviewed a feasibility report compiled by John Van Sciver, which is incorporated
<br />herein by reference, and, based upon tf~is feasibility report, the SraTE determined the PRO~ECr to
<br />be technically and financially feasible.
<br />8. At its July 2000 meeting, the CWCB approved a loan to the BoRROwER in an amount up to
<br />$43,000, at an interest rate of 3.75% per annum for a repayment term of 20 years. The CWCB
<br />has determined t'rrat Ynis laan qual'~'ies as a Smali Project Loan in accordance with § 37-60-122.7,
<br />C.R.S. (1999), and the BoRROwER will suffer undue hardship if the project is not completed as
<br />soon as possible because of the inability to deliver water.
<br />9. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
<br />mutually agreeable terms and conditions.
<br />THEREFORE, in cor~sideration of the mutual and dependent covenants contained herein,
<br />the parties agree as follows:
<br />A. The BoRROwER agrees as follows:
<br />1. Construction Fund Program Procedures. The following items are procedures the BoRROwER
<br />shall follow during the construction phase of the PRO~ECT.
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