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<br />and warrants that it has taken all steps necessary to pledge
<br />its full faith and credit for this obligation.
<br />
<br />12. Obta~n and maintain general fire and hazard insurance
<br />on the project in an amount not less than the outstanding
<br />amount of the loan made by the State to the Borrower until the
<br />Borrower has repaid the loan in the full under the terms of
<br />paragraph A.II. above. The State shall be the sole insured of
<br />this policy. The outstanding loan amount payable to the State
<br />shall be reduc7d ~n the amount of any payments made ~o the I
<br />State under th~s ~nsurance coverage. If only a port~on of the
<br />outstanding loan amount is paid to the State under this policy,
<br />the number of installment payments shall remain unchanged;
<br />however, the amount of each payment shall be reduced.
<br />
<br />13,
<br />attached
<br />herein.
<br />
<br />Comply with the Construction Fund Program Procedures
<br />hereto as Exhibit 0 and incorporated by reference
<br />
<br />14. Comply with the provisions of section 37-60-120,
<br />Colorado Revised Statutes, and any other applicable statutes,
<br />procedures, requirements, rules, or regulations which the State
<br />has.
<br />
<br />15. Not sell, convey, assign, grant, transfer, mortgage,
<br />pledge, encumber, or otherwise dispose of the project or any
<br />portion thereof, so long as any of the annual installments
<br />required by paragraph A.1I. above remain unpaid, without the
<br />prior written concurrence of the State.
<br />
<br />16. In consideration for the State's promises herein set
<br />forth, promise to indemnify, save and hold harmless and defend
<br />the State, and all of its employees and agents, acting
<br />otficially or otherwise, from any and all liability, claims,
<br />demands, actions, debts, and attorney fees arising out of,
<br />claimed on account of, or in any manner predicated upon loss or
<br />damage to the property of and injuries to, or death of all
<br />persons whatsoever, which may occur, or is sustained in
<br />connection with the performance of this contract, or by
<br />conditions created thereby, or based upon any violation of any
<br />statute, ordinance, or regulation, and the defense of any such
<br />claims or actions.
<br />
<br />B. Upon default in the payments herein set forth to be made
<br />by the Borrower, or default in the performance of any covenant
<br />or agreement contained herein, the State, at its option, may
<br />(a) declare the entire principal amount then outstanding
<br />immediately due and payable; (b) for the account of the
<br />Borrower, incur and pay reasonable expenses for repair,
<br />maintenance, and operation of the project herein described and
<br />such expenses as may be necessary to cure the cause of default;
<br />(c) take possession of the project, repair, maintain, and
<br />operate or lease it; (d) act upon the security (described in
<br />paragraph A.S. above) deeded to the State; and/or (e) take any
<br />other appropriate legal action. All remedies described herein
<br />may be simultaneously or selectively and~successivley,yif'
<br />enforced. The provisions of this contract may be enforced by
<br />the State at its option without regard to prior waivers by it
<br />of previous defaults by the Borrower, through judicial
<br />proceedings to require specific performance of this contract or
<br />by such other proceedings in law or equity as may be deemed
<br />necessary by the State to insure compliance with provisions of
<br />this contract and the laws and regulations under which this
<br />contract is entered into.
<br />
<br />C. The State agrees that it shall:
<br />
<br />1. Loan to the Borrower for the purpose of this contract
<br />an amount not to exceed ~ifty Thousand Eight Hundred Dollars
<br />($50,800), Said Fifty Thousand Eight Hundred Oollars ($50,800)
<br />
<br />Page 4 of B Pages
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