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1092 Water and Irrigation Ch. 233 dollars for each claim and in an aggregate amount of not less than five hun- dred thousand dollars for all claims which arise out of anyone incident. The policy may provide that it does not apply to any act or omission of a stock- holder, officer, or member of a board of directors of an owner if such act or omission is dishonest, fraudulent, malicious, or criminal. The policy may also contain other reasonable provisions with respect to policy periods, ter- ritory, claims, conditions, and other matters common to such policies of insurance. The limitation of liability pursuant to this paragraph (a) shall not apply to any criminal, fraudulent, or malicious act or omission by a member of the board of directors of the owner, an officer of the owner, or a stock- holder of the owner, nor shall it apply to any ultra vires act of the owner or of a member of the board of directors, an officer, or a stockholder of such owner. The provisions of this paragraph (a) shall not be deemed to impose any liability upon a member of the board of directors, an officer, or a stockholder of the owner of a reservoir beyond that provided in section 7-42-118, C.R.S. (b) An adequate substitute for such insurance may be in the form of: (I) A good and sufficient bond, in an amount equal to such recovery limitations duly executed by a qualified corporate surety approved by the commissioner of insurance, conditioned upon the payment by the entity or person who owns, controls, or operates a water storage reservoir of any valid and final judgment for damages imposed within the judgment limitations established in this subsection (3); (II) A good and sufficient escrow of acceptable securities, as defined in section 24-91-102, C.R.S., or an annual irrevocable letter or annual letters of credit issued by any national or state bank or any bank for cooperatives as chartered under Title III of the "Federal Farm Credit Act of 1971", as amended, and deposited with an escrow agent pursuant to an escrow contract or agreement requiring the escrow agent to pay from the escrow account amounts necessary to discharge a valid and final judgment for damages within the limits established in this subsection (3). Such escrow contract or agree- ment shall provide that it cannot be revoked or amended until after any claims for damage against such entity or person have been discharged or until appli- cable statutes of limitation pertaining thereto have expired. (III) A combination of insurance and any of the substitutes described in this paragraph (b). Section 2. Article 42 of title 7,ctolorado Revised Statutes, as 'amended, is amended BY THE ADDITION OF A NEW SECTION to read: 7-42-118. Liability of stockholders, directors, and officers. Stockholders, directors, and officers of corporations formed under the provisions of this article shall enjoy the same measure of immunity from liability for corporate acts or omissions as stockholders, directors, and officers of corporations formed under the "Colorado Corporation Code", articles I to 10 of this title, or the "Colorado Nonprofit Corporation Act", articles 20 to 29 of this title, Section 3. 35-49-104, Colorado Revised Statutes, 1984 Repl. Vol., is amended to read: