Laserfiche WebLink
<br />certificates are current. The BORROWER shall file notices of renewals of said policies with the <br />STATE as renewals occur. <br /> <br />During the time of construction, the STATE reserves the right to increase the above amount of <br />insurance so that said amounts at a minimum correspond to the amount established by the <br />Colorado Governmental Immunity Act, now and as hereafter amended. <br /> <br />4. BORROWER'S Indemnification Of The STATE. The BORROWER shall, without expense or legal <br />liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and <br />economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any <br />liability incurred by the STATE as a result of the STATE'S interest in the Collateral. <br /> <br />5, BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the STAT~, the BORROWER shall maintain commercial general <br />liability insurance with a company that is satisfactory to the STATE covering the management, <br />operation, and maintenance of the PROJECr with minimum limits of $1,000,000 combined single <br />limit for each occurrence and $2,000,000 general aggregate, including products/completed <br />operations and personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. The BORROWER shall <br />provide the STATE with an Acord Form 27 ~videncing said insurance and an additional insured <br />endorsement, and shall provide the STATE with documentation of renewals of said insurance. <br />The STATE will not disburse any loan funds without evidence of said insurance coverage. <br />Throughout the life of this contract, the STATE reserves the right to increase the above amount of <br />insurance so that said amounts at a minir11Um correspond to the amount established by the <br />Colorado Governmental Immunity Act, now ctnd as hereafter amended. <br /> <br />Because the BORROWER is a "public entity" within the meaning of the Colorado Govemmental <br />Immunity Act, CRS 24-10-101, et sea., as amended ("Acr), the BORROWER shall at all times <br />maintain such liability insurance, by commercial policy or self-insurance, as is necessary to meet <br />its liabilities under the Act. Upon request I;ly the STATE, the BORROWER shall provide proof of <br />such insurance. <br /> <br />6, BORROWER'S Authority To Contract. Pursuant to its election held on November 2, 1999, and <br />to its statutory authority, the BORROWER'S Board of Trustees has duly passed an ordinance <br />that constitutes a legislative measure of the BORROWER and is irrepealable for the term of this <br />loan contract, authorizing the BORROWER: <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note; and <br /> <br />b. To make annual loan payments in accordance with the promissory note; and <br /> <br />c. To pledge revenues from the BORROWER'S Utility Fund to repay this loan, and to execute a <br />Security Agreement to convey a security interest to the STATE in the pledged revenues; and <br /> <br />d. To set aside sufficient revenues each year to pay the annual installment in a special <br />account, separate and apart from other revenues of the BORROWER, in accordance with the <br />Pledge of Revenues proviSions of this contract; and <br /> <br />e. To establish a reserve debt service fund in the amount of one annual loan payment, and to <br />replenish that fund anytime it is depleted; <br /> <br />Said ordinance is attached hereto as Appendix A and incorporated herein. <br /> <br />7. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the BORROWER <br />shall submit to the STATE an opinion from Red Book bond counsel that the contract will be duly <br /> <br />Town of Palisade <br /> <br />Page 3 of 11 <br />