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<br />7. Without expense to the State, manage, operate, and <br />maintain the project continuously in an efficient and <br />economical manner, and assume all legal liability for such <br />management, o~ration, and maintenance. The Borrower agrees to <br />indemnify and ~ld the State harmless from any liability as a <br />result of the State's interest in the project facilities and <br />any other property identified in paragraph A.5. above. The <br />Borrower shall maintain general liability insurance covering <br />the management, operation, and maintenance of the project unt,il <br />it completes repayment to the State in at least the following <br />amounts: I <br /> <br />d. For any injury to one person in any single <br />occurrence, the sum of Five Hundred Thousand Dollars <br />($500,000), <br /> <br />b. For any injury to two or more persons in any <br />single occurrence, the sum of One Million Dollars <br />($1,000,000). <br /> <br />Said liability insurance shall name the State as a <br />co-insured. A copy of a certificate of said liability <br />insurance must be filed with the Colorado Water <br />Conservation Board prior to the start of the operation <br />of the project system. <br /> <br />8. Make the services of said project available within its <br />capacity to all persons in the Borrower's service area without <br />discrimination as to race, color, religion, or natural origin <br />at reasonable charges (including assessments, taxes, or fees), <br />whether for one or more classes of service, in accordance with <br />a schedule of such charges formally adopted by the Borrower <br />through its shareholders, as may be modified from time to <br />time. The initial rate schedule must be approved by the <br />State. Thereafter, the Borrower may, subject to the approval <br />of the State, make such Inodifications to the rate schedule as <br />the Borrower deems necessary to efficiently and economically <br />provide for the financial requirements of the system as long as <br />the rate schedule remains reasonable and non-discriminatory. <br /> <br />9. Adjust its operating costs and service charges from <br />time to time to provide for adequate operation and maintenance, <br />emergency repair services, obsolescence reserves, and debt <br />reserves. <br /> <br />10. Provide the State with such periodic reports as the <br />State may require and permit periodic inspections of its <br />operations and accounts by a designated representative of the <br />btate. <br /> <br />, <br />\ <br />I <br />f <br /> <br />11. Repay to the State the total principal sum of One <br />Hundred Seventeen Thousand Five Hundred Sixty-Five Dollars <br />($117,565), which includes the project loan amount and the <br />feasibility report amount, together with interest at the rate <br />of five percent (5%) per annum, said repayment to be made in <br />constant annual installments of Three Thousand Three Hundred <br />Fifty-Nine Dollars ($3,359) each, for thirty-five (35) years, <br />as shown in Exhibit C, attached hereto and incorporated by <br />reference herein, which first installment shall be due ~nd <br />payable on the first day of the month next succeeding the month <br />in which the S~ate determines that the project has been <br />sUbstantially completed, and yearly thereafter until the entire <br />principal sum shall have been paid. However, in the event the <br />Borrower does not draw funds commencing on the date specified <br />in paragraph C.l.a. below, the obligation to repay shall be <br />postponed for the same number of months as the Borrower delays <br />in drawing funds. Said installment payments shall be made <br />payable to the Colorado Water Conservation Board, payable at <br />the offices of said Hoard in Denver, Colorado. The Borrower <br />pledges its full faith and credit in support of this obligation <br /> <br />Page 3 or 8 Pages <br />