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<br />assessments from time to time as necessary, upon written notice from the State, to <br />provide sufficient funds for adequate operation and maintenance, emergency repair <br />services, obsolescence reserves, and debt reserves, and to assure repayment of the <br />project loan to the State as provided herein. Should the stockholders fail to set any <br />assessment, the Contractor shall establish an adequate assessment for purposes of this <br />contract pursuant to Section 7-42-104(2), CRS (1986). <br /> <br />10. Pursuant to its Articles of Incorporation and to its By-Laws, have its Board of <br />Directors take all necessary actions consistent therewith to adopt an order or a <br />resolution authorizing the Contractor to contract this loan debt, and authorizing the <br />President and the Secretary to pay the indebtedness, Such orders shall be attached <br />hereto as Exhibit C and included herein. The Contractor, by a majority vote of its <br />Board of Directors, shall also authorize the deed of trust security interest required by <br />the State in paragraph B.14. below. Such authorization shall be attached hereto and <br />incorporated herein as Exhibit D. The above conditions must be performed by the <br />Contractor prior to the State performance under this contract. <br /> <br />11. Pursuant to Section 7-42-104, CRS (1986), and to its By-Laws, the Contractor <br />through either its stockholders or its Board of Directors, shall take all necessary actions <br />consistent therewith to levy assessments to raise sufficient funds to pay this contract <br />loan debt in a timely manner and as required by the terms and conditions herein to <br />assure repayment of the project loan to the State. In the event that the assessment(s) <br />levied by the Contractor, or the revenues resulting therefrom, are or become <br />insufficient to assure repayment of the State as required by the terms and conditions <br />herein, then the Contractor, upon written notice thereof from the State, shall <br />immediately take all necessary action consistent with its By-Laws and Section 7-42-104, <br />CRS (1986), including but not limited to additional assessments, to raise sufficient <br />revenue to assure repayment of the project loan to the State. <br /> <br />12. Provide the State with such periodic reports as the State may require and permit <br />periodic inspections of its operations and accounts by a designated representative of the <br />State. <br /> <br />13, Repay to the State the total sum of One Million Two Hundred Eighteen <br />Thousand Two Hundred Twenty-Four Dollars ($1,218,224), which includes the project <br />loan amount and the Nineteen Thousand Three Hundred Twenty-Five Dollars <br />($19,325) feasibility report amount, together with interest at the rate of One percent <br />(1%) per annum, or such lesser sum as may be actually borrowed by Contractor, <br />together with interest at the rate of one percent (1%) per annum, said repayment to be <br />made in equal amortized annual installments of the amount necessary to repay the <br />principal amount borrowed, together with interest at the rate of one percent (1%) per <br />annum, over a period of forty years, not to exceed the amounts as shown in Exhibit E, <br />attached hereto and incorporated by reference herein, which first installment shall be <br />due and payable on the first day of the month next succeeding the month in which the <br /> <br />Page i of 13 Pages <br />