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<br />LOAN CONTRACT
<br />Yindsor Reservoir and Canal Co.
<br />Emergency Loan
<br />
<br />5. (State may release contraCt at its option): In its sole discretion, the State may
<br />at any time and in writing give any consent, deferment, subordination, release,
<br />satisfaction, or termination of any or all of the Borrower's obligations under this
<br />agreement, with or without valuable consideration, upon such terms and conditions as
<br />the State may determine to be: (a) advisable to further the purposes of this contract or
<br />to protect the State's financial interest therein, and (b) consistent with both the
<br />statutory purposes of this contract and the limitations of the statutory authority under
<br />which it is made.
<br />
<br />6. (The Borrower further Warrants): The Borrower warrants that by acceptance
<br />of the loan money pursuant to the terms of this cmltract and by the Borrower's
<br />representation herein, the Borrower shall be estopped from asserting for any reason
<br />that it is not authorized or obligated to repay the loan money to the State as required
<br />by ,this contract, '
<br />
<br />7. (Casualty and Eminent Domain): If, at any time, during the term of this
<br />Contract, (a) the Borrower's Project facilities which are pledged as collateral for this
<br />loan, including buildings, or any portion thereof, are damaged or destroyed, in whole or
<br />in part, by fire or other casualty, or (b) title to or use of the Project facilities or any
<br />part thereof shall be taken under the exercise of the power of eminent domain, the
<br />State and the Borrower shall cause the net proceeds of any insurance claim or
<br />condemnation aw, ard,' to be applied to the, ptom,pt replacem,"'. ent, r"~.t., u" resto,', ration
<br />of the Project facilities or any'portion thereof. Any net procee~ ' hhter such
<br />work has been completed shall be paid to the Borrower. he.,pet proc clAre
<br />insufficient to pay the full cost of the replacement, repair",~vst~f?r,' th, e Borrower
<br />shall complete the work and pay any cost in excess of the net pro~~lVidld,
<br />however, that the Borrower shall be obligated to pay any such cost in exc~t
<br />proceeds only to the extent of any moneys available therefor in any funds created under
<br />this Contract),
<br />
<br />8. (Borrower to make the services of said project available without
<br />discrimination): The Borrower shall make the services of said project available within
<br />its capacity to all qualified persons in the Borrower's service area without
<br />discrimination as to race, color, religion, or natural origin at reasonable charges
<br />(including assessments, taxes, or fees), whether for one or more classes of service, in
<br />accordance with a schedule of such charges formally adopted by the Borrower through
<br />its By-laws, as may be modified from time to time. The initial rate schedule must be
<br />approved in writing by the State before any such charges are initially assessed.
<br />Thereafter, the Borrower may, subject to the approval of the State, make such
<br />modifications to the rate schedule as the Borrower deems necessary to efficiently and
<br />economically provide for the financial requirements of the system, including repayment
<br />of the State, as long as the rate schedule remains reasonable and non-discriminatory.
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<br />Page 10 of 13 Pages
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