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<br />personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. A copy of a oertificate of <br />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 by <br />the STATE without evidence of said current coverage. Throughout the life of this contraot, the STATE <br />reserves the right to increase the above amount of insurance so that said amounts at a minimum <br />correspond to the amounts established by the Colorado Governmental Immunity Act, now and as <br />hereafter amended. <br /> <br />7. BORROWER'S authority to contract. Pursuant to its election held December 2, 1997, and to its <br />statutory authority, the BORROWER'S Board of Directors has duly adopted a resolution that constitutes <br />a legislative measure of the BORROWER and is irrepealable for the term of this loan contract, <br />authorizing the BORROWER: <br /> <br />a. To enter into and comply with the terms of this contract and promissory note; <br /> <br />b. To pledge revenues from the BORROWER'S general funds in an amount sufficient to payoff the <br />loan made under this contract; <br /> <br />c. To set aside the pledged revenues each year to pay the annual installment in a special account, <br />separate and apart from other revenues of the BORROWER; <br /> <br />d. To make annual loan payments in accordance with the promissory note; and <br /> <br />e. To establish a reserve debt service aCCOlJnt by setting aside assessment revenues in the amount <br />of one annual payment, and to replenish that fund anytime it is depleted; <br /> <br />f. To execute a security agreement to convey a security interest to the STATE in the pledged <br />revenues; and <br /> <br />g. To execute a deed of trust to convey a security interest to the STATE in the property described in <br />the Collateral Provisions herein. <br /> <br />The BORROWER'S resolution is attached hereto as Appendix 1 and incorporated herein. The actions <br />of the BORROWER adopting said resolution ;sind executing the necessary documents to convey the <br />security interests required by this contract are conditions precedent to performance by the STATE <br />under this contract. <br /> <br />8. Attorney's opinion letter. Prior to the execwtion of this contract by the STATE, the BORROWER shall <br />submit to the STATE a letter from its attorney stating that it is the attorney's opinion that the contract <br />will be duly executed by officers of the BORROWER who are duly elected or appointed and are <br />authorized to execute the contract and to bind the BORROWER; that the resolution of the BORROWER <br />authorizing the execution and delivery of the contract was duly adopted by the governing body of the <br />BORROWER; that there are no provisions in the Colorado Constitution or any other state or local law <br />that prevent this contract from binding the BORROWER; and that the contract will be valid and binding <br />against the BORROWER if entered into by the STATE. <br /> <br />9. Promissory Note Provisions. The PromiSSOry Note setting forth the terms of repayment and <br />evidencing this debt in the amount of up to $510,469 at an interest rate of 3.75% per annum for a <br />term of 30 years is attached as Appendix 2 and incorporated herein. <br /> <br />a. Revision Of Promissory Note. In the event the BORROWER does not use all of the loan funds for <br /> <br />Julesburg Irrigation District <br /> <br />pgge 4 of 12 <br /> <br />Loan Contract <br />