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<br />e. Interest during construction. Interest shall accrue at the rate of 5% on the funds that are <br />advanced by the STATE to the BORROWER during construction. The amount of the interest accrued <br />during construction shall be calculated by the STATE and the BORROWER shall repay that amount to <br />the STATE either within ten (10) days after the date the STATE determines that the PROJECT has <br />been substantially completed, or, at the STATE'S discretion, the amount shall be deducted from the <br />final disbursement of loan funds that the STATE makes to the BORROWER. <br /> <br />f. Prepayment conditions. The BORROWER may prepay all or any of the loan at any time, without <br />penalty. These payments will be applied first to any accrued interest and then to reduce the <br />principal amount. <br /> <br />~. Collection costs. If the p,indpal or accrued Inte,est under P AlDt paid when due. <br />the BORROWER agrees to pa.v. all reason. able costs of c. ollm" , including reasonable attorney fees. <br />In the event of any bankruptcy or similar proceedings, co . lIelPT.hf t;clude all costs and <br />attorney fees incurred in co. nnection with such proce S,Jnqll.di'1J/'l feeTof counsel for <br />attendance at meetings of creditors' committees or other committees. ' ~ <br /> <br />10. Warranties. The BORROWER warrants the following: <br /> <br />a. By acceptance of the loan money pursuant to the terms of this contract and by its <br />representations herein, the BORROWER shall be estopped from asserting for any reason that it is not <br />authorized or obligated to repay the loan money to the STATE as required by this contract. <br /> <br />b. The BORROWER has full power and authority to enter into this contract. The execution and <br />delivery of this contract and the performance and observation of its terms, conditions and <br />obligations have been duly authorized by all necessary actions of the BORROWER. <br /> <br />c. The BORROWER has not employed or retained any company or person, other than a bona fide <br />employee working solidly for the BORROWER, to solicit or secure this contract. The BORROWER has <br />not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona <br />fide employee, any fee, commission, percentage, gift, or other consideration contingent upon or <br />resulting from the award or the making of this contract. <br /> <br />d. The collateral identified in the Collateral Provisions of this contract is not encumbered by any <br />other liens or in any other manner. <br /> <br />e. The specific revenues to be pledged to repay the STATE under this contract shall include, but <br />not be limited to, water charges and fees, the establishment of which have been authorized by <br />ordinance of the BORROWER. The BORROWER hereby pledges sufficient annual revenues to pay the <br />annual installment amount pursuant to the Promissory Note provisions of this contract, and hereby <br />agrees to establish a separate account into which all such moneys shall be deposited. <br /> <br />11. Pledge of revenues. The BORROWER agrees that the specific revenues to be pledged to repay <br />the STATE shall include, but not be limited to, water charges and fees levied for that purpose as authorized by <br />ordinance of the BORROWER. <br /> <br />a. Revenues for this loan are to be kept separate. The BORROWER hereby irrevocably pledges such <br />revenues to repay the STATE loan, agrees that these revenues shall be set aside and kept in an <br />account separate from other BORROWER revenues, and warrants that these revenues will not be <br />used for any other purpose except for repayment of the BORROWER'S 1990 Energy Impact <br />Assistance Fund ("EIAF") loan from the Colorado Department of Local Affairs ("DOLA"), the <br />BORROWER'S 1991 Joint Revenue Bonds, and the BORROWER'S 1996 loan from the Colorado Water <br />Resources and Power Authority ("AUTHORITY"). <br /> <br />Town of Lyons <br /> <br />Page 5 of 1 2 <br /> <br />Loan Contract <br />