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<br />, <br />" <br /> <br />above amount of insurance so that said amounts at a minimum correspond to the amount <br />established by the Colorado Governmental Immunity Act, now and as hereafter amended, <br /> <br />If the BORROWER is a "public entity" within the meaning of the Colorado Governmental <br />Immunity Act, Article 10 of Title 24, C.R.S" as amended ("Act"), the BORROWER shall at all <br />times maintain such liability insurance, by commercial policy or self-insurance, as is <br />necessary to meet its liabilities under the Act. Upon request by the STATE, the BORROWER <br />shall provide proof of such insurance. <br /> <br />4, BORROWER'S Authority To Contract. The 130RROWER warrants that its Board of Directors <br />has complied with all statutory and other legal requirements and duly adopted a resolution <br />that constitutes a legislative measure of the BORROWER and is irrepealable for the term of <br />this loan contract, authorizing the BORROWER; <br /> <br />a, To enter into and comply with the terms of this contract and the promissory note; and <br /> <br />b, To pledge revenues from the BORROwER'S general funds to repay this loan and to <br />execute a Security Agreement to convey a security interest to the STATE in the pledged <br />revenues; and <br /> <br />c, To set aside revenues each year, in an amount sufficient to pay the annual installment, <br />in a special account, separate and apart from other revenues of the BORROWER, in <br />accordance with the Pledge of Revenues provisions of this contract; and <br /> <br />d, To make annual loan payments in accord~nce with the promissory note; and <br /> <br />e. To execute and deliver a deed(s) of trust, security agreement(s) and assignment(s) to <br />convey a security interest to the STATE in certain water rights, in accordance with the <br />Collateral provision of this contract. ' <br /> <br />Said resolution is attached hereto as Appendix A and incorporated herein, <br /> <br />5, Attorney's opinion letter. Prior to the execution of this contract by the STATE, the <br />BORROWER shall submit to the STATE an opinion from Red Book bond counsel that the <br />contract will be duly executed by officers of the BORROWER who are duly elected or appointed <br />and are authorized to execute the contract and to bind the BORROWER; that the election held <br />by the Borrower to obtain voter approval of this loan met all requirements of the Colorado <br />Constitution or ~ny other state or local law, tt1at the resolution of the BORROWER authorizing <br />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 <br />local law that prevent this contract from binding the BORROWER; and that the contract will be <br />valid and binding against the BORROWER if entered into by the STATE, <br /> <br />6, Promissory Note Provisions, The Promissory Note setting forth the termS of repayment <br />and evidencing this debt in the amount of up to $500,000 at an interest r~te of 4,75% per <br />annum for a term of 20 years is attached as APpendix B and incorporated herein, <br /> <br />a. Interest During Project Completion, As the loan funds are disbursed by the STATE to <br />the BORROWER during PROJECT completion, interest shall accrue at the rate of 4,75% ' <br />per annum, The amount of the interest accrued during PROJECT completion shall be <br />calculated by the STATE and the BORROWER shall repay that amount to the STATE either <br />within ten (10) days after the date the STATE determines that the PROJECT has been <br /> <br />Chatfield South Water District <br /> <br />Page 3 of 11 <br />