C153718 Paid in Full Contract

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

C. The STATE and the BORROWER mutually agree as follows:
1. Designated agent of the STATE. The CWCB, which includes its agents and employees, is hereby
designated as the agent of the STATE for the purpose of this contract.
2. Contract is not assignable. This contract is not assignable by the BORROWER except with the prior
written approval of the STATE.
3. Contract relationship. The parties to this contract intend t the relationship between them
contemplated by this contract is that of lender-borrower, not employer :e. . •ent, employee, or
servant of the BORROWER shall be, or shall be deemed to be, an employe ,r n f the STATE. The
BORROWER will be solely and entirely responsible for its acts and the acts of its :!. r- a loyees, servants,
engineering firms, construction firms, and subcontractors during r•• =nce of this contract.
4. Complete integration of all understandings. This agreeme � t en • a h pi integration of
all understandings between the parties. No prior or contemporaneous addition, h amendment
hereto shall have any force or effect whatsoever unless embodied herein in writing, No subsequent novation,
renewal, addition, deletion, or other amendment hereto shall have any force or effect unless embodied in a
written contract executed and approved pursuant to STATE fiscal rules.
5. Eligible expenses. PROJECT costs eligible for refinancing by the STATE shall be limited to the purchase
price of the PROJECT.
6. STATE may release contract at its option. In its sole discretion, the STATE may at any time give any
consent, deferment, subordination, release, satisfaction, or termination of any or all of the BORROWER'S
obligations under this contract, with valuable consideration,upon such terms and conditions as the STATE may
determine to be:
a. advisable to further the purposes of this contract or to protect the STATE'S financial interest therein,
and
b. consistent with both the statutory purposes of this contract and the lir,itations of the statutory
authority under which it is made.
7. Casualty and eminent domain. If, at any time, during the term of this contract, (a) the BORROWER'S
PROJECT facilities and/or property pledged as collateral for this loan, including buildings or any portion thereof,
are damaged or destroyed, in whole or in part, by fire or other casualty, or (b) title to or use of the PROJECT
facilities or any part thereof shall be taken under the exercise of the power of eminent domain, the BORROWER
shall cause the net proceeds of any insurance claim or condemnation award to be applied to the prompt
replacement, repair and restoration of the PROJECT facilities or any portion thereof. Any net proceeds remaining
after such work has been completed shall be paid to the BORROWER. If the net proceeds are insufficient to pay
the full cost of the replacement, repair and restoration, the BORROWER shall complete the work and pay any
cost in excess of the net proceeds.
8. Waiver. The waiver of any breach of a term of this of this contract shall not be construed as a waiver
of any other term, or of any subsequent breach of the same term.
9. Captions. The captions and headings contained in this contract are for convenience and reference only
and shall not be construed so as to define or limit the terms or provisions contracted herein.
10. STATE'S approval. This contract requires review and approval of plans, sbecifications, and various
other technical and legal documents. The STATE'S review of these documents i$ only for the purpose of
verifying BORROWER'S compliance with this contract and shall not be construed or ',interpreted as a technical
review or approval of the actual design or construction of the PROJECT rehabilitation. Notwithstanding any
consents or approvals given the BORROWER by the STATE on any such documents, BORROWER and its
Morgan County Quality Water District Page 6 of 9 Loan Contract