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<br />~.. <br /> <br />14. As security for the loan to be made to it by the state, <br />execute a deed of trust within thirty (30) days of the <br />substantial completion of the project that shall convey to the <br />state an undivided one hundred percent (100%) of the following: <br /> <br />An undivided one hundred percent (100%) <br />interest in and to the Sanchez Dam and <br />Reservoir and all appurtenant structures <br />thereto, including all lands on which these <br />facilities are located. <br /> <br />The state recognizes that the deed of trust will be a second <br />mortgage, the first mortgage being held by the united states <br />Department of Agriculture, Farmers Home Administration (USDA- <br />FHA) in the principle sum of One Hundred Fifty Thousand Dollars <br />($150,000). The final payment on the first mortgage is due in <br />the year 2005. <br /> <br />15. Obtain, if possible, and maintain general fire and <br />hazard insurance on the project in an amount not less than the <br />outstanding amount of the loan made by the State to the <br />Contractor until the Contractor has repaid the loan in full <br />under the terms of paragraph A.13. above. The state shall be <br />the sole insured of this policy. The Contractor shall submit <br />certificates of insurance evidencing such insurance policies to <br />the State at the signing of this contract. Notices of renewals <br />of said policies shall also be filed with the State as they <br />occur. The outstanding loan amount payable to the state shall <br />be reduced in the amount of any payments made to the State under <br />this insurance coverage. If only a portion of the outstanding <br />loan amount is paid to the State under this policy, the number <br />of installment payments shall remain unchanged; however, the <br />amount of each payment shall be reduced. <br /> <br />Page B of 17 Pages <br />