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liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any other <br /> property identified in the Collateral Provisions of this contract. <br /> 6. BORROWER'S liability insurance. Upon execution of this contract and continuing until complete <br /> repayment of the loan is made to the STATE, the BORROWER shall maintain commercial general liability <br /> insurance with a company that is satisfactory to the STATE covering the management, operation, and <br /> maintenance of the PROJECT with minimum limits of $1,000,000 combined single limit for each <br /> occurrence and $2,000,000 general aggregate,including products/completed operations and personal <br /> injury. <br /> Said general liability insurance shall name the STATE as additional insured. A copy of a certificate <br /> of said insurance and an additional insured endorsement must be filed with the STATE. Evidence of <br /> current insurance coverage is to be provided as renewals occur. No loan funds shall be advanced <br /> by the STATE without evidence of said current coverage. Throughout the life of this contract, the <br /> STATE reserves the right to increase the above amount of insurance so that said amounts at a <br /> minimum correspond to the amount established by the Colorado Governmental Immunity Act, now <br /> and as-hereafter amended. <br /> 7. BORROWER'S authority to contract. The BORROWER shall, pursuant to its statutory authority, <br /> articles of incorporation, by-laws, and as authorized by the stockholders at its Annual Meeting held <br /> February 28, 1995, the minutes of which are incorporated herein by this reference, the board of <br /> directors shall adopt a resolution, irrepealable during the life of this loan, authorizing the President <br /> and Secretary, on behalf of the BORROWER, to do the following: <br /> a. Contract for this loan with the STATE, and to pay the indebtedness, and <br /> b. Levy assessments sufficient to pay the annual amounts due under this contract and to <br /> establish a reserve debt service fund equivalent to an annual payment within a period of ten (10) <br /> years, and <br /> c. Place money collected from assessments each yei ecial account separate and apart <br /> from other BORROWER revenues to assure rep o hl n to the STATE, and <br /> d. Execute the deed of trust to provide the s Ay as spe •fi in >; eollateral Provisions of <br /> this contract, and <br /> e. Execute a Security Agreement to secufit74 <br /> e..\nt pledged herein in accordance with the <br /> Pledge of Revenues Provisions of this cont, <br /> Ilk <br /> Said resolution is attached hereto as Appendix A and incorporated herein. <br /> 8. Attorney's opinion letter. Prior to the execution of this contract by the STATE, the BORROWER <br /> shall submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the <br /> person signing for the BORROWER was duly elected or appointed and has authority to sign such <br /> documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S shareholders <br /> and board of directors have validly adopted resolutions approving this contract; that there are no <br /> provisions in the BORROWER'S articles of incorporation or by-laws or any state or local law that prevent <br /> this contract from binding the BORROWER; and that the contract will be valid and binding against the <br /> BORROWER if entered into by the STATE. <br /> Beaver Park Water, Inc. Page 4 of 1 2 Loan Contract <br />