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to be applied to the prompt replacement, repair and restoration of the Project facilities or any portion thereof. Any net proceeds remaining after such work has been completed shall be paid to the Contractor. If the net proceeds are insufficient to pay the full cost of the replacement, repair and restoration, the Contractor shall complete the work and pay any cost in excess of the net proceeds (provided, however, that the Contractor shall be obligated to pay any such cost in excess of net proceeds only to the extent of any moneys available therefor in any funds created under this Contract). 8. The Borrower hereby states that it has complied with all statutory and other requirements to enable it to enter into this Contract for the loan covered by this Contract, authorizing such loan, authorizing the repayment of such loan, authorizing the establishment of a separate reserve escrow account for the monies received from the Platoro Reservoir Project, and establishing a security interest in such funds. The documents evidencing such authorization are attached hereto as Appendix C and incorporated herein by this reference. The Borrower's performance of these requirements are conditions precedent to any obligations of the State to perform under this Contract. The Borrower hereby state a d ms that the revenues from water user and storage fees wh establish for Platoro Dam and Reservoir (pursuant to -118, .R.S. and its other authority) shall provide for the ��M� r"" o sufficient revenues for: (a). The managem , operation and maintenance of the Platoro Dam and Reservoir; (b) . Repayment of the loans covered by this Contract; and (c). Establishment of and maintenance of the reserve account required pursuant to this Contract. During the term of this Contract, in the event that such fees are or become insufficient to assure repayment of the loans as required by the terms of this Contract, the Borrower shall immediately take all necessary actions, including but not limited to making such modifications to the rate schedule as the Borrower deems necessary to efficiently and economically raise sufficient revenue to assure repayment of the project loans to the State and to provide for the financial requirements of the Platoro Dam and Reservoir. The Borrower agrees not to terminate the Platoro Reservoir Enterprise, nor adversely withdraw or deplete its assets, nor otherwise adversely affect the Enterprise's ability to perform during the term of this Contract. C�