C153718 Paid in Full Contract

• Contract/PO #: C153718
• Contractor Name: Morgan County Quality Water District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

K. The STATE now desires, by this contract, to loan money to the BORROWER for this PROJECT upon
mutually agreeable terms and conditions.
NOW THEREFORE, in consideration of the mutual and dependent covenants contained, the parties
agree as follows:
A. The BORROWER agrees as follows: • '
1. BORROWER'S indemnification of the STATE. The BORROWER shall, - _ of'lega$liability to
the STATE, manage, operate, and maintain the PROJECT continuously in a ffi A • • •mie Mainner.
The BORROWER agrees to indemnify and hold the STATE harmless f • •• any liabi i • r • the STATE as a
result of the STATE'S interest in the PROJECT facilities and any • p identifie• in the Collateral
Provisions of this contract.
2. BORROWER'S liability insurance. Upon execution of this contract n tlJnii complete
repayment of the loan is made to the STATE, the BORROWER shall maintain commerci I gener • insurance
with a company that is satisfactory to the STATE covering the management, operation, and maintenance of
the PROJECT with minimum limits of $1,000,000 combined single limit for each odcurrence and $2,000,000
general aggregate, including products/completed operations and personal injury.
Said general liability insurance shall name the STATE as additional insured. A copy of a certificate of
said insurance and an additional insured endorsement must be filed with the STIATE. Evidence of current
insurance coverage is to be provided as renewals occur.'No loan funds shall be adva iced by the STATE without
evidence of said current 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 amount
established by the Colorado Governmental Immunity Act, now and as hereafter amended.
3. BORROWER'S authority to contract. The BORROWER shall, pursuant to itsl statutory authority, have
its Board of Directors adopt a resolution, irrepealable during the life of this loan, authorizing the BORROWER'S
President and Secretary, on behalf of the BORROWER, to do the following:
a. Contract for this loan with the STATE, and to pay the indebtedness, and
b. Execute the deed of trust as security required by the STATE as Specified in the Collateral
Provisions of this contract, and
c. Charge water rates, fees, and other charges, hereinafter referred to as WATER USER FEES,
sufficient to repay the annual amounts due under this contract and tb establish a reserve debt
service fund equivalent to one-half of an annual loan payment within a period of five(5)years,and
d. Place money collected from WATER USER FEES each year in a special a count, separate and apart
from other BORROWER revenues, to assure repayment of this loan to th STATE, and
e. Execute a Uniform Commercial Code Security Agreement and Financing Statement in
accordance with the Pledge of Revenues Provisions of this contract to secure the revenues pledged
herein in favor of the STATE.
The BORROWER'S resolution is attached hereto as APPENDIX B and incorpora ted herein.
4. Promissory note provisions. The BORROWER understands that this contract is also a promissory note
for the repayment of funds loaned according to the terms set forth herein.
a. Principal amount. The principal amount of the loan shall be Three Million Dollars ($3,000,000).
b. Interest rate. The interest on the principal shall accrue at the rate of four percent (4%) per
annum on all funds advanced to BORROWER.
Morgan County Quality Water District Page 2 of 9 Loan Contract