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operations and accounts by a designated representative of the State. 7. Pursuant to its home rule charter and to its ordinances, including. but not limited to Ordinance NO. 109. 1977. and Ordinance 100. 1986. the City Council of the Contractor shall take all necessary actions consistent therewith to adopt an ordinance authorizing the Contractor to contract this loan debt. and authorizing the undersigned signatory to sign on behalf of the Contractor. and authorizing the Contractor to use project fees. levies. or other assessments as may be necessary to pay the indebtedness. Such ordinance shall be attached hereto as Exhibit A and included herein. The Contractor. through a majority vote of the City Council present. shall also authorize the security interest required by the State in paragraph A.e. below. The above . conditions must be performed by the Contractor prior to the State performance under this contract. 8. As security for the loan to be made to it by the State. execute a security commitment within thirty (30) days of the advance of funds from the state which shall convey to the State the following: ad valorem taxes and net revenues of the City'S water system on a parity with outstanding water bonds 9. Pursuant to its home rule charte~ and to its ordinances. including. but not limited to. Ordinance No. 109. 1977. and Ordinance No. 100. 1986. the contractor. through it City Council as provided therein, shall take all necessary actions consistent therewith to levy taxes to raise sufficient funds to pay this contract loan debt in ~ timely manner and as reguired by the terms and conditions herein to assure repayment of the project loan to the State. In th~ event that the taxes levied by the Contractor. or the revenue~ reSUlting therefrom, are or become insufficient to assure rep~yment of the State as required by the terms and conditions her~in, then the Contractor. upon written notice thereof trom the State, shall immediately take all necessary action cOflsistent with its home rule charter. including but not limited ~o the collection of additional taxes. to raise sufficient reyenue to assure repayment of the project. loan to the Sta~e. 10. Repay to the State the total pri~cipal sum of Two Million Eight Hundred Sixty-Seven Thousa~d. Eight Dollars and Eighty Cents ($2,867,008.80). which includes the project loan amount. and interest at the rate of five percent (5\) per annum, said repayment to be made in constant annual installments of Four Hundred Seventy-Seven Thousand Eight Hundred Thirty-Four Dollars and Eighty cents ($477.834.80) each. for six (6) years. as shown in Exhibit B, attached hereto and incorporated by reference herein. which first installment shall be due and payable on the first day of the month as scheduled in Exhibit B and yearly thereafter until the entire principal sum shall have been paid. Said installment payments shall be made payable to the Colorado Water Conservation Board. payable at the offices of said Board in Denver. Colorado. The Contractor pledges its full faith and credit in support of this obligation and warrants that it has taken all steps necessary to pledge its full faitb and credit for this Obligation. 11. Obtain and maintain general fire and hazard insurance on the project in an amount not less than the outstanding amount of the loan made by the State to the Contractor until the Contractor has repaid the loan in the full under the terms of paragraph A.lO. above. The State shall be named coinsured with the Contractor on this pOlicy. The outstanding loan amount payable to the State shall be reduced in the amount of any payments made to the State under this insurance coverage. If only a portion of the outstanding loan amount is paid to the State under this policy. the number of installment payments Page 2 of 2 Pages