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<br />3. Contract relationship. The parties to this contract intend that the relationship between them
<br />contemplated by this contract is that of lender-borrower, not employer-employee. No agent,
<br />employee, or servant of the BoRROwER shall be, or shall be deemed to be, an employee,
<br />agent, or servant of the STATE. The BoRROwER will be solely and entirely responsible for its
<br />acts and the acts of its agents, employees, servants, engineering firms, construction firms,
<br />and subcontractors during the performance of this contract.
<br />4. Complete integration of all understandings. This agreement is intended as the complete
<br />integration of all understandings between the parties. No prior or contemporaneous addition,
<br />deletion, or other amendment hereto shall have any force or effect whatsoever unless
<br />embodied herein in writing. No subsequent novation, renewal, addition, deletion, or other
<br />amendment hereto shall have any force or effect unless embodied in a written contract
<br />executed and approved pursuant to STATE fiscal rules.
<br />5. Waiver. The waiver of any breach of a term of this contract shall not be construed as a
<br />waiver of any other term, or of any subsequent breach of the same term.
<br />6. Eligible expenses. PRO�ECr costs eligible for financing by the STATE shall be limited to the
<br />cost of the purchase price of the PRO�ECT w t and of legal services necessary to the
<br />execution and delivery of this contrac I. ' es must be approved by the STArE in
<br />writing and in advance to be eligible for ' g by th TE.
<br />7. STare may release contract at its opti o ion, the STaTE may at any time
<br />give any consent, deferment, subo , r a, satisfaction, or termination of any or all
<br />of the BoRROwER's obligations urtde ontract, with valuable consideration, upon such
<br />terms and conditions as the STATE may determine to be:
<br />a. advisable to further the purposes of this contract or to protect the STaTE's financial interest
<br />therein, and
<br />b. consistent with both the statutory purposes of this contract and the limitations of the
<br />�statutory authority underwhich it is made.
<br />8. Casualty and eminent domain. If, at any time, during the term of this contract, (a) the
<br />BORROWER�S PROJECT faCllltl@S 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 PRO�ECr
<br />facilities or any part thereof shall be taken under the exercise of the power of eminent
<br />domain, the BoRROwER shall cause the net proceeds of any insurance claim or condemnation
<br />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
<br />completed shall be paid to the BoRROVVER. If the net proceeds are insufficient to pay the full
<br />cost of the replacement, repair and restoration, the BoRROwER shall complete the work and
<br />pay any cost in excess of the net proceeds.
<br />9. Services of PRO�ecT available without discrimination. The BoRROwER shall make the
<br />services of its water system available within its capacity to all qualified persons in the
<br />BORROWER seniice area without discrimination as to race, color, religion, or natural origin at
<br />reasorable charges (including assessments, taxes, or fees), whether for one or more classes
<br />of service, in accordance with a schedule of such charges formally adopted by the BoRROwER
<br />through its ordinances or resolutions.
<br />Chatfield South Water District Page 7 of 11
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