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sustained in connection with the performance of any contract related to the PROJECT or by <br /> conditions created thereby, or based upon any violation of any statute, ordinance, or <br /> regulation, and the defense of any such claims or actions. <br /> 6. Liability Insurance during Construction. During construction of the PROJECT, the <br /> BORROWER shall require the construction contractor and any subcontractors to maintain the <br /> following insurance coverage, in the limits shown, during the term of their contracts and until <br /> the PROJECT is complete. CWCB may request proof of construction contractor's and <br /> subcontractor's insurance during the term of the PROJECT. <br /> a. Commercial general liability insurance with minimum limits of $1,000,000 combined <br /> single limit for each occurrence and $2,000,000 general aggregate. This insurance <br /> coverage shall include products/completed operations and bodily injury/property <br /> damage. <br /> b. Worker's compensation and employer's liability insurance in the required statutory <br /> amounts. <br /> c. Automobile liability insurance that includes coverage for all owned, non-owned and hired <br /> vehicles with minimum limits of $1,000,000 combined single limit for bodily injury and <br /> property damage. <br /> C. GENERAL PROVISIONS <br /> 1. Periodic Inspections. Throughout the term of this CONTRACT, the BORROWER shall permit <br /> a designated representative of the CWCB to make periodic inspections of the PROJECT. <br /> Such inspections shall cover the condition of the PROJECT, operating records, maintenance <br /> records, and financial records. These inspections are solely for the purpose of verifying <br /> compliance with the terms and conditions of this CONTRACT and shall not be construed or <br /> interpreted as an approval of the actual design, construction or operation of any element of <br /> the PROJECT facilities. <br /> 2. Applicable Laws. The BORROWER shall strictly adhere to all applicable federal, state, and <br /> local laws and regulations that are in effect or may hereafter be established throughout the <br /> term of this CONTRACT. <br /> 3. Designated Agent Of The CWCB. The CWCB's employees are designated as the agents <br /> of the CWCB for the purpose of this CONTRACT. <br /> 4. Assignment. BORROWER'S rights and obligations, under this CONTRACT, are personal and <br /> may not be transferred, assigned without the prior, written consent of the State. Any <br /> attempt at assignment without such consent shall be void. All assignments approved by <br /> BORROWER or the State are subject to all of the provisions hereof. <br /> 5. Contract Relationship. The Parties to this CONTRACT intend that the relationship between <br /> them under 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 CWCB. The BORROWER shall be solely and entirely responsible for <br /> its acts and the acts of its agents, employees, servants, engineering firms, construction <br /> Page 7 of 12 <br />