Laserfiche WebLink
<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 /> <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained, the <br />parties agree as follows: <br /> <br />A. The BORROWER agrees as follows: <br /> <br />1. BORROWER'S Indemnification Of The STATE. The BORROWER shall, without expense or legal liability <br />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 PROJECT facilities and any other <br />property identified in the Collateral Provisions of this contract. <br /> <br />2. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the STATE, 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 PROJECT with minimum limits of $1,000,000 combined single limit <br />for each occurrence and $2,000,000 general aggregate, including products/completed operations and <br />personal injury. <br /> <br />Said general liability insurance shall name the ~as~.ti al insured. A copy of a certifi.lcate of <br />said insurance and an additional insured e~~"""ent u e filed with the STATE. Evidence of <br />current insurance coverage is to be provide . ~w . ur. No loan funds sh~1I be advanced by <br />the STATE without evidence of said curreif90~ ra. oughout the life of this contract, the STATE <br />reserves the right to increase the above ~un . surance so that said amounts at a minimum <br />correspond to the amount established by t.h_e. ~.. .010 do Governmental Immunity Act, now and as <br />hereafter amended. <br /> <br />3. BORROWER'S Authority To Contract. The~ROWER shall, pursuant to its statutory authority and <br />decree of incorporation, have its board of directors adopt a resolution, irrepealable during the term of <br />this loan, authorizing the President and Secretary, on behalf of the BORROWER, to do the following: <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note, and to pay the <br />indebtedness; and <br /> <br />b. To levy taxes and assessments and to establish and collect rates and charges for the sale of <br />water and power in amounts sufficient to pay the annual amounts due under this contract; and <br /> <br />c. To pledge the water, power, tax and assessment revenues to make annual loan payments, and to <br />place said revenues in a special account separate and apart from other BORROWER revenues, in <br />accordance with the Pledge of Revenues Provisions of this contract; and <br /> <br />d. To make annual payments in accordance with the promissory note; and <br /> <br />e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of <br />Revenues Provisions of this contract; and <br /> <br />f. To obtain a certificate of deposit to serve as collateral in the amount of $150,000 as security for <br />the loan, and to execute an assignment of certificate of deposit as described in the Collateral <br />Provisions of this contract; and <br /> <br />g. To execute a Security Agreement to secure the revenues pledged herein in accordance with the <br />Pledge of Revenues provisions of this contract. <br /> <br />Upper Yampa Water Conservancy District <br /> <br />Page 2 of 10 <br />