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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 <br /> liability insurance with a company that is satisfactory to the STATE covering the management, <br /> operation, and maintenance of the PROJECT with minimum limits of$1,000,000 combined single limit <br /> for each occurrence and $2,000,000 general aggregate, including products/completed operations <br /> and personal injury. <br /> Said general liability insurance shall name the STATE as additional insured. The BORROWER shall <br /> provide the STATE with a certificate of said insurance and an additional insured endorsement, and <br /> shall provide the STATE with documentation of renewals of said insurance. The STATE will not <br /> disburse any loan funds without evidence of said insurance coverage. Throughout the life of this <br /> contract, the STATE reserves the right to increase the above amount of insurance so that said <br /> amounts at a minimum correspond to the amount established by the Colorado Governmental <br /> Immunity Act, now and as hereafter amended. <br /> 7. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory authority, <br /> articles of incorporation and by-laws, have its stockholders and board of directors adopt resolutions, <br /> irrepealable during the life of this loan, authorizing the President and Secretary, on behalf of the <br /> BORROWER, to do the following: <br /> a. To enter into and comply with the terms of this contract and the promissory note, and <br /> b. To levy assessments in an amount sufficient to pay the annual amounts due under this contract, <br /> and to pledge assessment revenues and the BORROWER'S right to receive said revenues for <br /> repayment of the loan, and <br /> c. To place the assessment revenues pledged to make annual loan payments in a special account <br /> separate and apart from other BORROWER revenues in accordance with the Pledge of Property <br /> Provisions of this contract and <br /> d. To make annual payments in accordance with the promissory note, and <br /> e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of <br /> Property Provisions of this contract, and <br /> PAWf. To obtain a certificate of deposit to serve as collateral in the o�br1� Jni Ln payment <br /> as security for the loan, and to execute an assignment of certificate of deposit as described in the <br /> Collateral Provisions of this contract, and <br /> g. To execute a Security Agreement and an Assignment of Deposit Account as Security to secure <br /> the revenues pledged herein in accordance with the Pledge of Property Provisions of this <br /> contract. <br /> Said resolutions are attached hereto as Appendix 1 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 <br /> stockholders and board of directors have validly adopted resolutions approving this contract; that <br /> there are no provisions in the BORROWER'S articles of incorporation or by-laws or any state or local <br /> law that prevent this contract from binding the BORROWER; and that the contract will be valid and <br /> Western Mutual Ditch Company Page 4 of 13 Loan Contract <br />