<br />5. 'Eligible expenses. PROJECT construction costs eligible for financing by the STATE shall be limited to the cost
<br />
<br />of:
<br />
<br />a. Preparing final designs and specifications for the PROJECT.
<br />
<br />b. Preparing bid and construction contract documents.
<br />
<br />c. Preparing environmental assessment or environmental impact statements, and otherwise complying with
<br />the Federal National Environmental Policy Act.
<br />
<br />d. Complying with all federal, state, and local regulatory requirements, including the obtaining of all required
<br />permits.
<br />
<br />e. land and water rights acquisitions needed for the PROJECT, including the necessary appraisals and
<br />evaluations.
<br />
<br />f. Fish and wildlife mitigation measures required by federal, state, or local laws and regulations.
<br />
<br />g. Actual construction as called for in the desft~lIT1rD. ", d in change orders approved by the STATE, the
<br />BORROWER, the CONSULTANT and the CONSTRUC~N~ .
<br />
<br />h. Engineering services for construction~,. e"l1'.. ~h<t'lI.i inn~g. '~eSign and construction management for
<br />STATE-approved change orders. 1.1 ~ ..f'I \J .L.A..,d1
<br />
<br />i. legal services for reviewing engineering services contracts, reviewing this contract, reviewing construction
<br />contract documents, acquiring the land and water rights needed for the PROJECT, and for complying with all
<br />federal, state, and local regulatory requirements. legal services must be approved by the STATE in writing
<br />before they are rendered to be eligible for payment by the STATE.
<br />
<br />6. STATE may release contract at its option. In its sole discretion, the STATE may at anytime give any consent,
<br />deferment, subordination, release, satisfaction, or termination of any or all of the BORROWER'S obligations under this
<br />contract, upon such terms and conditions as the STATE may determine to be:
<br />
<br />a. advisable to further the purposes of this contract or to protect the STATE'S financial interest therein, and
<br />
<br />b. consis~ent with both the statutory purposes of this contract and the limitations of the statutory authority
<br />under which it is made.
<br />
<br />7. Casualty and eminent domain. If, at any time, during the term of this contract, (a) the BORROWER'S PROJECT
<br />facilities which are pledged as collateral for this loan, including buildings, or any portion thereof, are damaged or
<br />destroyed, in whole or in part, by fire or other casualty, or (b) title to or use of the PROJECT faCilities or any part thereof
<br />shall be taken under the exercise of the power of eminent domain, the BORROWER shall cause the net proceeds of any
<br />insurance claim or condemnation award to be applied to the prompt replacement, repair and restoration of the PROJECT
<br />facilities or any portion thereof. Any net proceeds remaining after such work has been completed shall be paid to the
<br />BORROWER. If the net proceeds are insufficient to pay the full cost of the replacement, repair and restoration, the
<br />BORROWER shall complete the work and pay any cost in excess of the net proceeds.
<br />
<br />8. Services of PROJECT available without discrimination. The BORROWER shall make the services of said PROJECT
<br />available within its capacity to all qualified persons in the BORROWER'S service area without discrimination as to race,
<br />color, religion, or natural origin at reasonable charges (including assessments, taxes, or fees), whether for one or more
<br />classes of service, in accordance with a schedule of such charges formally adopted by the BORROWER through its by-
<br />laws, as may be modified from time to time. The initial rate schedule must be improved
<br />
<br />9. Captions. That the captions and headings contained in this contract are for convenience and reference only
<br />and shall not be construed so as to define or limit the terms or provisions contracted herein.
<br />
<br />TOWN OF SILT
<br />
<br />Page 7 of 9
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<br />LOAN CONTRACT
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