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<br />12. Remedies For Default. Upon default in the payments to be made by the BORROWER
<br />under this contract, or if the BORROWER fails to comply with any provision of this contract,
<br />the CWCB, at its option, may:
<br />
<br />a. suspend this contract and withhold further loan disbursements pending corrective
<br />action by the BORROWER, and if the BORROWER does not cure the default as provided
<br />for below, permanently cease loan disbursements and deem the PROJECT
<br />substantially complete;
<br />
<br />b. declare the entire principal amount, accrued interest, and late charges, if any, then
<br />outstanding immediately due and payable;
<br />
<br />a., exercise its rights under any appendices to this contract, including, but not limited to,
<br />the Promissory Note, Security Agreement, and/or Deed of Trust; and/or
<br />
<br />b, take any other appropriate action,
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<br />The CWCB shall provide written notice tot he Borrower of any such default and shall ive
<br />the Borrower an opportunity to cure within thirty (30) days of receipt of such notice, All
<br />remedies described herein may be simultaneously or selectively and successively
<br />enforced. The CWCB may enforce the provisions of this contract at its option without
<br />regard to prior waivers of previous defaults by the BORROWER, through judicial
<br />proceedings to require specific performance of this contract, or by such other
<br />proceedings in law or equity as may be deemed necessary by the CWCB to ensure
<br />compliance with provisions of this contract and the laws and regulations under which this
<br />contract is executed. The CWCB's exercise of any or all of the remedies described
<br />herein shall not relieve the BORROWER of any of its duties and obligations under this
<br />contract.
<br />
<br />13, BORROWER'S Indemnification Of The CWCB, The BORROWER agrees to indemnify and
<br />hold the CWCB harmless from any liability incurred by the CWCB as a result of the
<br />CWCB's interest in the PROJECT facilities and any other property identified in Section 3
<br />(Collateral) of the Project Summary.
<br />
<br />14, OPERATION OF PROJECT. The BORROWER shall, without expense or legal liability to the
<br />CWCB, manage, operate, and maintain the PROJECT continuously in an efficient and
<br />economical manner.
<br />
<br />15. BORROWER'S Liability Insurance, Upon execution of this contract and continuing until
<br />complete repayment of the loan is made to the CWCS, the BORROWER shall maintain
<br />commercial general liability insurance with a company that is satisfactory to the CWCB
<br />covering the management, operation, and maintenance of the PROJECT with minimum
<br />limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general
<br />aggregate, including products/completed operations and personal injury,
<br />
<br />Said general liability insurance shall name the CWCS as additional insured, The
<br />BORROWER shall provide the CWCB with a certificate of said insurance and an additional
<br />insured endorsement, and proof of renewals of said insurance, The CWCB shall not
<br />disburse any loan funds without evidence of said insurance coverage, Throughout the life
<br />of this contract, the CWCB reserves the right to increase the above amount of insurance,
<br />
<br />B PROJECT PROVISIONS
<br />
<br />1. Construction Fund Program Procedures, During the completion of the PROJECT, the
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<br />Julesburg Irrigation District
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<br />Loan Contract
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