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1 4 <br /> State, to provide sufficient funds for adequate operation and maintenance, emergency <br /> repair services, obsolescence reserves, and debt reserves, and to assure repayment of <br /> the project loan to the State as provided herein. Should the stockholders fail to set any <br /> assessment, the Contractor shall establish an adequate assessment for purposes of this <br /> contract pursuant to Section 7-41-104(2), CRS (1986). <br /> 10. Pursuant to its By-Laws and to its Articles of Incorporation, have its <br /> Board of Directors take all necessary actions consistent therewith to adopt an order or <br /> a resolution authorizing the Contractor to contract this loan debt, and authorizing the <br /> President and the Secretary to pay the indebtedness. Such orders shall be attached <br /> hereto as Exhibit C and included herein. The Contractor, through a majority vote of its <br /> Board of Directors, shall also authorize the deed of trust security interest required by <br /> the State in paragraph B.14. below. Such authorization shall be attached hereto and <br /> incorporated herein as Exhibit D. The above conditions must be performed by the <br /> Contractor prior to the State performance under this contract. <br /> 11. Pursuant to Section 7-42-104, CRS (1986), and to its By-Laws, take all <br /> necessary actions consistent therewith to levy assessments to raise sufficient funds to <br /> pay this contract loan debt in a timely manner and as required by the terms and <br /> conditions herein to assure repayment of the project loan to the State. In the event <br /> that the assessment(s) levied by the Contractor, or the revenues resulting therefrom, are <br /> or become insufficient to assure repayment of the State as required by the terms and <br /> conditions herein, then the Contractor, upon written notice thereof from the State, shall <br /> immediately take all necessary action consistent with its By-Laws and Section 7-42-104, <br /> CRS (1986), including, but not limited to additional assessments, to raise sufficient <br /> revenue to assure repayment of the project loan to the State. <br /> 12. Provide the State with such periodic reports as the State may require and <br /> permit periodic inspections of its operations and accounts by a designated <br /> representative of the State. <br /> 13. Repay to the State the total sum of One Million One Hundred Twenty <br /> Thousand One Hundred Seventy-Five Dollars ($1,120,175), which includes the project <br /> loan amount and the Nine Thousand-Five-Hundred Seventy-Seven Dollars and Fifty <br /> Cents ($9,577.50) feasibility report amount, together with interest at the rate of four <br /> percent (4%) per annum, said repayment to be made in constant annual installments of <br /> Forty-Four Thousand Eight Hundred Seven Dollars ($44,807) each for Twenty-Five <br /> (25) years, as shown in Exhibit E, attached hereto and incorporated by reference <br /> herein, which first installment shall be due and payable on the first day of the month <br /> next succeeding the month in which the State determines that the project has been <br /> substantially completed, and yearly thereafter until the entire principal sum and interest <br /> shall have been paid. Said installment payments shall be made payable to the <br /> Colorado Water Conservation Board, payable at the offices of said Board in Denver, <br /> Colorado. <br /> Page 5 of 12 Pages <br />