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10. INTEREST PRIOR TO PROJECT COMPLETION <br /> For all loan funds disbursed by the CWCB to the Borrower prior to the Contract Project <br /> Performance End Date,interest shall accrue on the disbursed funds at the rate set by the CWCB <br /> for this loan. The CWCB shall calculate the amount of the interest that accrued prior to the <br /> Project's substantial completion(as determined by the CWCB)and notify the Borrower of such <br /> amount. The Borrower shall repay that amount to the CWCB either(1)within thirty(30)days <br /> from the date of notification from the CWCB, (2)at the CWCB's discretion, said interest shall <br /> be deducted from the final disbursement of loan funds that the CWCB makes to the Borrower, <br /> or(3)at the CWCB's discretion, said interest shall be rolled into the Total Loan Amount due. <br /> 11. RETURN OF UNUSED LOAN FUNDS <br /> Any loan funds disbursed but not expended for the Project in accordance with the terms of this <br /> Contract shall be remitted to the CWCB within thirty(30)calendar days from notification from the <br /> CWCB of either(1) completion of the Project or(2) determination by the CWCB that the Project <br /> will not be completed. Any such loan funds so remitted to CWCB shall be applied to the principal <br /> payment of amounts due on the Loan. <br /> 12. BORROWER'S AUTHORITY TO CONTRACT <br /> The BORROWER warrants that it has full power and authority to enter into this Contract. The <br /> execution and delivery of this Contract and the performance and observation of its terms, <br /> conditions and obligations have been duly authorized by all necessary actions of the Borrower.The <br /> Borrower's Authorizing Resolution(attached as Appendix 4) and incorporated herein, include the <br /> Resolutions of the Board of Directors. <br /> 13. BOND COUNSEL'S OPINION LETTER <br /> Prior to the final execution of this Contract the Borrower shall submit to the CWCB a letter from <br /> its bond counsel stating that it is the attorney's opinion that: <br /> A. The Contract has been duly executed by officers of the Borrower who are duly elected or <br /> appointed and are authorized to execute the Contract and to bind the Borrower; and <br /> B. The resolutions(or ordinances)of the Borrower authorizing the execution and delivery of the <br /> Contract were duly adopted by the governing bodies of the Borrower; and <br /> C. There are no provisions in the Borrower's articles of incorporation or bylaws or any state or <br /> local law that prevent this Contract from binding the Borrower; and <br /> D. The Contract will be valid and binding against the Borrower if entered into by the CWCB <br /> subject to typical limitations related to bankruptcy, police power and creditor's rights <br /> generally. <br /> E. The election held by the Borrower to obtain voter approval of this loan met all requirements <br /> of the Colorado Constitution or any other state or local law. <br /> 14. PLEDGE OF REVENUES <br /> The Borrower irrevocably(but not exclusively)pledges to the CWCB,for the purpose of repaying <br /> the Total Loan Amount,the Pledged Revenues,in such amount as is necessary to make each annual <br /> payment due under this Contract. Any additional indebtedness that may be secured by the Pledged <br /> Revenues in the future that is incurred in accordance with §14.E., hereof, and not related to the <br /> initial construction of the Rio Grande Reservoir Rehabilitation-Phase 2, shall be the Borrower's <br /> "Parity Indebtedness." <br /> Page 6 of 15 <br /> Contract Number:CT2018-3303 <br />