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<br />, <br />) <br /> <br />) <br /> <br />exceed $2,300,000, at an effective interest rate of 3% per annum, and for a term of 40 years, to <br />finance the PROJECT. <br /> <br />9. The STATE; has determined that the BORROWER has met the criteria set forth ~ 37-60-130(3), C.R.S. <br />(Supp. 1996). <br /> <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained,the <br />parties agree as follows: <br /> <br />A. The BORROWER agrees as follows: <br /> <br />1. Time For PROJECT Completion. The BORROWER recognizes that time is of the essence in the <br />performance of all of its obligations under this contract. Therefore, the BORROWER shall complete <br />its purchases of the Shares no later than two (2) years from the date of this cOntract. The time for <br />completion may be extended subject to the approval of the STATE. The BORROWER must provide, <br />in writing, documented justification for any request for extension sixty (60) days prior to the end of <br />the period for completion. <br /> <br />2. BORROWER'S Liability Insurance. The BORROWER agrees to indemnify and hold the STATE <br />harmless from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT <br />and any other property identified in the Collateral Provisions of this contract. Upon execution of this <br />contract and continuing until complete repayment of the loan is made to the STATE, the BORROWER <br />shall maintain commercial general liability insurance with a company that is satisfactory to the <br />STATE covering the management, operation, and maintenance of the PROJECT with minimum limits <br />of $1,000,000 combined single limit. for each occurrence. and $2,000,000 general aggregate, <br />including products/completed operations and personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. A copy of a certilicate <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 term of this contract, th~ <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 Govemmental ImmUnity Act; now <br />and as hereafter amended. <br /> <br />3. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory authority, <br />articles of incorporation, and by-laws, have its board of directors adopt a resolution, irrepe~llable <br />during the life of this loan, authorizing the President and Secretary, on behalf of the BORROWER, to <br />do the following: . <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note, and to pay the <br />indebtedness, and . <br /> <br />b. To levy assessments in an amount sufficient to pay the annual amounts due under this <br />contract, and . <br /> <br />c. To place the assessment revenues pledged to make annual loan payments in accordanCE> with <br />the Pledge of Property Provisions of this contract in a special account separate and apart from <br />other BORROWER revenues, and <br /> <br />. d. To make annual payments in accordance with the promi~sory note, and <br /> <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 /> <br />f. To execute an Assignment of Deposit Account as Security and a Security Agreement to secure <br /> <br />Lower Arkansas Water Management Association <br /> <br />Page 2 of 10 <br /> <br />Loan Contract <br />