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authorizing the execution and delivery of the contract was duly adopted by the governing body of the <br />BORROWER; that there are no provisions in the Colorado Constitution or any other state or local law <br />that prevent this contract from binding the BORROWER; and that the contract will be valid and binding <br />against the BORROWER if entered into by the STATE. <br />9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment and <br />evidencing this debt in the amount of up to $504,000 at an interest rate of 5% per annum for a term <br />of 30 years is attached as Appendix 2 and incorporated herein. <br />a. Revision Of Promissory Note. In the event the BORROWER does not use all of the loan funds <br />for construction of the PROJECT, the Promissory Note may be adjusted in accordance with the <br />Changes Provisions of this contract. <br />b. Interest During Construction. As the loan funds are disbursed by the STATE to the BORROWER <br />during construction, interest shall accrue at the rate of 5 %. The amount of the interest accrued <br />during construction shall be calculated by the STATE and the BORROWER shall repay that amount <br />to the STATE either within ten (10) days after the date the STATE determines that the PROJECT <br />has been substantially completed, or, at the STATE'S discretion, the amount shall be deducted <br />from the final disbursement of loan funds that the STATE makes to the BORROWER. <br />10. Changes. The STATE may decrease the amount of the loan under this contract or extend the time <br />for completion of the PROJECT through a REVISION LETTER, approved by the State Controller or his <br />designee, in the form attached hereto as Appendix 3. The REVISION LETTER shall not be valid until <br />approved by the State Controller or such assistant a I ate. Upon proper execution <br />and approval, the REVISION LETTER shall become an a t contract and, except for the <br />Special Provisions of the contract, the REVISION LETTE . h1a supersede the contract in the event of <br />a conflict between the two. The parties under s EVISION LETTER may be <br />used only for decreasing the final loan amount or d etion of the PROJECT. <br />In the event that the parties execute the REVISI R d ITe a mount of the loan, the <br />parties shall amend the Promissory Note and all documents executed by the BORROWER to convey <br />security interests to the STATE as required by this contract to reflect the decreased loan amount. <br />11. Warranties. The BORROWER warrants the following: <br />a. By acceptance of the loan money pursuant to the terms of this contract and by its <br />representations herein, the BORROWER shall be estopped from asserting for any reason that it is <br />not authorized or obligated to repay the loan money to the STATE as required by this contract. <br />b. The BORROWER has full power and authority to enter into this contract. The execution and <br />delivery of this contract and the performance and observation of its terms, conditions and <br />obligations have been duly authorized by all necessary actions of the BORROWER. <br />c. The BORROWER has not employed or retained any company or person, other than a bona fide <br />employee working solely for the BORROWER, to solicit or secure this contract. The BORROWER <br />has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a <br />bona fide employee, any fee, commission, percentage, gift, or other consideration contingent <br />upon or resulting from the award or the making of this contract. <br />d. The collateral identified in the Collateral Provisions of this contract is not encumbered by any <br />Town of Morrison Page 5 of 13 <br />