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� <br />term of twenty (20) years for financing 75% Of PROJECT COStS contingent on an appraisal of <br />the water rights being conducted and on the BoRROwER duly approving the pledging of the <br />water rights as collateral for the loan. The CWCB also approved the use of loan funds to <br />refinance a purchase of raw water rights already completed, if approved by the CWCB <br />Executive Director. <br />I. At its May 1998 meeting, the CWCB amended its approval of this loan to allow the <br />BoRROwER to apply loan funds to 100% Of PROJECT COStS due to the BoRROwER's need to <br />purchase a portion of the water rights sooner than anticipated as part of an agreement with <br />Douglas County, which will purchase the remaining portion of the water rights at a later date. <br />J. Pursuant to House Bill 98-1189, Section 1(i), the Colorado General Assembly authorized the <br />CWCB to Ioan Five Hundred Thousand Dollars ($500,000) at an interest rate of 4.75% per <br />annum for a term of twenty (20) years for financing PRO�ECT costs, and authorized use of the <br />loan funds to refinance PRO�ECT costs. <br />K. The STATE now desires, by this contract, to loan money to the BoRROwER for this PRO�ECT <br />upon mutually agreeable terms and conditions, subject to the availability of funding for that <br />purpose. <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained herein, <br />the parties agree as follows: <br />A. The BoRROwER agrees as follows: <br />1. Time for PRO�ecT Completion. The Bo gni e at time is of the essence in the <br />performance of all of its obligations und is c �efore, the BoRROVVER shall <br />finalize the PRO�ECT water rights purchase(s) ' ears of the date of this contract. <br />The time for completion of the PRO�E. �t�e ended subject to the approval of the <br />STATE The BoRROVVER must provide, �i ' i , documented justification for any request for <br />an extension within sixty (60) days prior t he end of the period for completion. <br />2. BORROWER Indemnification of the SrATE. The BoRROwER shall, without expense or legal <br />liability to the STATE, manage, operate, and maintain its water system continuously in an <br />efficient and economical manner. The BoRROVVER agrees to indemnify and hold the STATE <br />harmless from any liability incurred by the STaTE as a result of the STaTE's interest in the <br />PRO�ECT water rights and any other property identified in the Collateral provision of this <br />contract. <br />3. BORROWER Liability Insurance. Upon execution of this contract and continuing until <br />complete repayment of the loan is made to the STATE the BORROWER shall maintain <br />commercial general liability insurance with a company that is satisfactory to the STATE <br />covering the management, operation, and maintenance of its water system with minimum <br />limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general <br />aggregate, including products/completed operations and personal injury. <br />Said general liability insurance shall name the STATE as additional insured. The BoRROwER <br />shall provide the STa,TE with an Acord Form 27 evidencing said insurance and an additional <br />insured endorsement, and shall provide the STaTE with documentation of renewals of said <br />insurance. The STATE will not disburse any loan funds without evidence of said insurance <br />coverage. Throughout the life of this contract, the STATE reserves the right to increase the <br />Cha�eld South Water District Page 2 of 11 <br />