The LPWW A was formed by the Animas La Plata Water Conservancy District and the

La Plata Water Conservancy District, both of which are quasi-municipal corporations and

political subdivisions of the State of Colorado. It is a public entity, duly organized under the

Colorado Constitution, Article XVI, § 18(2)(a) and (2)(b) and C.RS. § 29- 1-201, et seq, and has

all of the rights, powers, and liabilities set forth in C.RS. § 29-1-204.2.

Specifically, the LPWWA can incur debts and secure them with property. C.RS. § 29-1-

204.2 (3)(g). There are no limitations on the LPWWA's ability to borrow.