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The Governmental Agency shall execute the Governmental Agency Bond to
<br /> evidence the Loan, and the obligations of the Governmental Agency under the Governmental
<br /> Agency Bond shall be deemed to be amounts payable under this Section 3.03. Each Loan
<br /> Repayment shall be deemed to be a credit against the corresponding obligation of the
<br /> Governmental Agency under this Section 3.03, and shall fulfill the Governmental Agency's
<br /> obligation to pay such amount hereunder and under the Governmental Agency Bond. Each
<br /> payment made pursuant to this Section 3.03 shall be applied first to interest then due and
<br /> payable, and then to the payment of principal.
<br /> (b) In addition to the payments required by subsection (a) of this Section 3.03, the
<br /> Governmental Agency shall pay a late charge for any payment that is received by the Authority
<br /> later than the tenth (10th) day following its due date, in an amount equal to the greater of twelve
<br /> percent(12%)per annum, or the Prime Rate plus one half of one percent per annum, on such late
<br /> payment from its due date to the date it is actually paid; provided, however, that the interest rate
<br /> payable on the Loan including such late charge shall not be in excess of the maximum rate
<br /> permitted by law as of the date hereof.
<br /> (c) Loan Repayments pursuant to this Section 3.03 shall be made by electronic
<br /> means (either by bank wire transfer or by Automated Clearing House"ACH"transfer).
<br /> SECTION 3.04. Unconditional Obligations. The obligation of the Governmental
<br /> Agency to make the Loan Repayments and all other payments required hereunder, and the
<br /> obligation to perform and observe the other duties, covenants, obligations, and agreements on its
<br /> part contained herein is payable solely from the Pledged Property, and shall be absolute and
<br /> unconditional and shall not be abated, rebated, set-off, reduced, abrogated, terminated, waived,
<br /> diminished, postponed, or otherwise modified in any manner or to any extent whatsoever, while
<br /> any payments under this Loan Agreement remain unpaid, regardless of any contingency, act of
<br /> God, event, or cause whatsoever, including (without limitation) any acts or circumstances that
<br /> may constitute failure of consideration, eviction or constructive eviction, the taking by eminent
<br /> domain, or destruction of, or damage to, the Project or the System, commercial frustration of the
<br /> purpose, any change in the laws of the United States of America or of the State of Colorado or
<br /> any political subdivision of either, or in the rules or regulations of any governmental authority,
<br /> any failure of the Authority to perform and observe any agreement, whether express or implied,
<br /> or any duty, liability, or obligation arising out of or connected with the Project or this Loan
<br /> Agreement, or any rights of set-off, recoupment, abatement, or counterclaim that the
<br /> Governmental Agency might otherwise have against the Authority or any other party or parties;
<br /> provided, however,that payments hereunder shall not constitute a waiver of any such rights.
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