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<br />! . <br /> <br />c. For any damage to property, the sum of Four Hundred Thousand Dollars <br />($400,000) for each occurrence. <br /> <br />Said general liability insurance shall name the State as a co-insured. A copy of a <br />certificate of said liability insurance must be filed with the State prior to the start <br />of the operation of the project system. Such certificate shall be incorporated <br />herein as part of this contract. <br /> <br />8. Make the services of said project available within its capacity to all qualified <br />persons in the Contractor's service area without discrimination as to race, color, religion, or <br />natural origin at reasonable charges (including assessments, taxes, or fees), whether for one <br />or more classes of service, in accordance with a schedule of such charges formally adopted <br />by the Contractor through its Board of Directors, as may be modified from time to time. <br />The initial rate schedule mnst be approved in writing by the State before any such charges <br />are initially assessed. Thereafter, the Contractor may, subject to the approval of the State, <br />make such modifications to the rate schedule as the Contractor deems necessary to <br />efficiently and economically provide for the financial requirements of the system, including <br />repayment of the State, as long as the rate schedule remains reasonable and <br />non-discriminatory. <br /> <br />9. Pursuant to applicable law, adjust its operating costs and rates, fees, and other <br />charges from time to time as necessary, upon written notice from the State, to provide <br />sufficient funds for adequate operation and maintenance, emergency repair services, <br />obsolescence reserves, and debt reserves, and to assure repayment of the project loan to the <br />State as provided herein. <br /> <br />10. Pursuant to applicable law, have its Board of Directors take all necessary <br />actions consistent therewith to adopt an order or a resolution authorizing the Contractor to <br />contract this loan debt, and authorizing the President and Secretary to execute this contract. <br />Such orders shall be attached hereto as Exhibit A and included herein. The Contractor, by <br />a majority vote of its Board of Directors, shall also authorize the deed of trust security <br />interest required by the State in paragraph A14. below. Such authorization shall be <br />attached hereto and incorporated herein as Exhibit B. The above conditions must be <br />performed by the Contractor prior to the State performance under this contract. <br /> <br />11. Pursuant to applicable law, the Contractor, through its Board of Directors, shall <br />take all necessary actions consistent therewith to fix and charge rates, fees, and other <br />charges to raise sufficient funds to pay this contract loan debt in a timely manner and as <br />required by the terms and conditions herein to assure repayment of the project loan to the <br />State. In the event that the rates, fees, and other charges charged by the Contractor, or the <br />revenues resulting therefrom, are or become insufficient to assure repayment to the State <br />as required by the terms and conditions herein, then the Contractor, upon written notice <br />thereof from the State, shall immediately take all necessary action consistent with applicable <br />law to raise sufficient revenue to assure repayment of the project loan to the State. <br /> <br />Page 1. of 11 pages <br />