C153723 PIF Contract - Laserfiche WebLink

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Said gene I liability insurance shall name the STATE as additional insured. A copy of a certificate of said insurance and 3n additional insured endorsement must be filed with the STATE. Evidence of current insurance coverage is to a provided as renewals occur. No loan funds shall be advanced by the STATE without evidence of said curreni coverage. Throughout the life of this contract, the STATE reserves the right to increase the above amount of insurance so that said amounts at a minimum correspond to the amounts established by the Colorado Gov rnmental Immunity Act, now and as hereafter amended. 7. DISTRICT'S and BORROWER'S authority to contract. The DISTRICT and the BORROWER warrant that both the Board of Di ectors of the DISTRICT and the governing body of the BORROWER have complied with all statutory and other req irements and duly passed resolutions that are irrepealable for the term of this loan contract, authorizing: a. Th DISTRICT and the BORROWER to enter into and comply with the terms of this contract with the STATE b. T BORROWER to establish a Certificate of Deposit account in the amount of one annual loan paym nt ($50,370,02) and execute an Assignment of Certificate of Deposit as required by the STATE to pro ide the security specified in the Collateral Provisions of this contract; c. Th BORROWER to set rates, fees and charges to be collected from the DISTRICT for services provided by the BORROWER in an amount sufficient to repay the an I amounts due under this contract; d. Th BORROWER to establish a reserve debt service a nual deposit equivalent to one-t th of an annual payment every year for 1 an r nish that fund anytime it is deplet d;�" " `�• e e. Th BORROWER to place money collected from the DISTRI CT, each year in a special account separate and af art from other BORROWER revenues in an amount" efficient to assure repayment of this loan to the S1 ATE; '',> a N- s f. Th BORROWER to execute a Security Agreeme accordance with the Pledge of Revenues Provis ons of this contract to secure the revenues pledged herein in favor of the STATE; and g. Thp BORROWER to repay this loan to the STATE. Said resolutions are attached hereto as APPENDIX A and incorporated herein. 8. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the DISTRICT /BORROWER shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the contract will be duly execu ed by officers of the DISTRICT and the BORROWER who are duly elected or appointed and are authorized to execute the contract on behalf of the DISTRICT and the BORROWER and to bind the DISTRICT and the BORROWER that the DISTRICT'S election on the question of entering into this contract was duly conducted in accordance with the statutes governing the DISTRICT and with its by -laws, and that notice of said election was provided as required by § 37 -42 -112, C.R.S. (1990); that the resolutions of the DISTRICT and the BORROWER aut iorizing the execution and delivery of the contract were duly adopted by the governing bodies of the DISTRIC and the BORROWER; that there are no provisions in the Colorado Constitution, any state or local law, or the DI RICT'S by -laws that prevent this contract from binding the DISTRICT and the BORROWER; and that the contract lilt be valid and binding against the DISTRICT and the BORROWER if entered into by the STATE. 9. Promi Isory note provisions. The BORROWER understands that this contract is also a promissory note for the repaynjent of funds loaned according to the terms set forth herein. a. PrI cipal amount. The principal amount of the loan shall be the total amount of funds advanced by th STATE to the BORROWER under the terms of this contract, not to exceed 871 ,000. u Orchard Mes Irrigation District & Page 4 of 12 Loan Contract Mutual MesalLateral Enterprise