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<br />Said general liability insurance shall name the STATE as additional insured. A copy of a certificate <br />of said insurance and an additional insured endorsement must be filed with the STATE. Evidence of <br />current insurance coverage is to be provided as renewals occur. No loan funds shall be advanced <br />by the STATE without evidence of said current coverage. Throughout the life of this contract, the <br />STATE reserves the right to increase the above amount of insurance so that said amounts at a <br />minimum correspond to the amount established by the Colorado Governmental Immunity Act, now <br />and as hereafter amended. <br /> <br />7. BORROWER'S authority to contract. The BORROWER shall, pursuant to its statutory authority, <br />articles of incorporation, and by-laws, have its shareholders and board of directors adopt resolutions, <br />irrepealable during the life of this loan, authorizing the President and Secretary, on behalf of the <br />BORROWER, to do the following: <br /> <br />a. Contract for this loan with the STATE, and to pay the indebtedness, and <br /> <br />b. Levy assessments sufficient to pay the annual amounts due under this contract and to <br />establish a reserve debt service fund equivalent to one-half an annual payment within a period <br />- of five (5) years, and <br /> <br />c. Place money collected from assessments each year in a special account separate and apart <br />from other BORROWER revenues to assure repayment of this loan to the STATE, and <br /> <br />d. Execute the deed of trust to provide the seDt~XDied in the Collateral Provisions <br />of this contract, andT'nI <br /> <br />, I'. <br />e. Execute a Uniform Commercial Code . ity gent d Financing Statement to <br />secore tpe.feyeAues pledged hereiAinaciNe titi'b -if Revenues Provisions of <br />this contract. <br /> <br />Such resolutions are attached hereto as Appendix A and incorporated herein. <br /> <br />8. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the BORROWER <br />shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the <br />person signing for the BORROWER was duly elected or appointed and has authority to sign such <br />documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S shareholders <br />and board of directors have validly adopted resolutions approving this contract; that there are no <br />provisions in the BORROWER'S articles of incorporation or by-laws or any state or local law that prevent <br />this contract from binding the BORROWER; and that the contract will be valid and binding against the <br />BORROWER if entered into by the STATE. <br /> <br />9. Promissory note provisions. The BORROWER understands that this contract is also a promissory <br />note for the repayment of funds loaned according to the terms set forth herein. <br /> <br />a. Principal amount. The principal amount of the loan shall be the total amount of funds <br />advanced by the STATE to the BORROWER under the terms of this contract, not to exceed <br />$1,202,000. <br /> <br />b. Interest rate. The interest on the principal shall accrue at the rate of four and 15/100 <br />percent (4.15%) per annum on all funds advanced to BORROWER. <br /> <br />c. Duration.' The repayment period of this loan shall be thirty (30) years. <br /> <br />Windsor Reservoir and Canal Company <br /> <br />Page 4 of 1 2 <br /> <br />Loan Contract <br />