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<br />Said liability insurance shall name the State as a <br />co-insured. A copy of a certificate of said liability <br />insurance must be filed with the COlorado Water <br />Conservation Board prior to the start of the operation <br />of the project system. <br /> <br />8. Make the services of said project available within its <br />capacity to all persons in the Borrower's service area withqut <br />discrimination as to race, color, religion, or natural origin <br />at reasonable charges (including assessments, taxes, or feesl), <br />whether for one or more classes of service, in accordance with <br />a schedule of such charges formally adopted by the Borrower <br />through its board of directors, as may be modified from time to <br />time. The initial rate schedule must be approved by the <br />State. Thereafter, the Borrower may. subject to tile approval <br />of the State, make such modifications to the rate schedule as <br />the Borrower deems necessary to efficiently and economically <br />provide for the financial requirements of the system as long as <br />the rate schedule remains reasonable and non-discriminatory. <br /> <br />9. Adjust its operating costs and service charges from <br />time to time to provide for adequate operation and maintenance, <br />emergency repair services, obsolescence reserves, and debt <br />reserves. <br /> <br />10. Provide the. State with such periodic reports as the <br />State may require and permit periodic inspections of its <br />operations and accounts by a designated representative of the <br />State. <br /> <br />11. Repay to the State the total principal sum of <br />Three Hundred Forty-Nine Thousand Six Hundred Eighty Dollars <br />($349,680), which includes the project loan amount and interest <br />at the rate of five percent (5%) per annum, said repayment to <br />be made in constant annual installments of Eight Thousand Seven <br />Hundred Forty-Two Dollars ($8,742) each, for forty (40) years, <br />as shown in Exhibit A, attached hereto and incorporated by <br />reference herein, which first installment shall be due and <br />payable on the first day of the month next succeeding the month <br />in which the State determines that the project has been <br />substantially completed, and yearly thereafter until the entire <br />p~incipal sum shall have been paid. However, in the event the <br />Borrower does not draw funds commencing on the date specified <br />in paragraph C.I.a. below, the obligation to repay shall be <br />postponed for the same number of months as the Borrower delays <br />in drawing funds. Said installment payments shall be made <br />payable to the Colorado Water Conservation Board. payable at <br />the offices of said Board in' Denver, Colorado. The Borrower <br />pledges its full faith and credit in support of this obligation <br />and warrants that it has taken all steps necessary to pledge <br />its full faith and credit for this obligation. <br /> <br />12. Obtain and maintain general fire and hazard insurance <br />on the project in an amount not less than the outstanding <br />amount of the loan made by the State to the Borrower until the <br />Borrower has repaid the loan in the full under the terms of <br />paragraph A.ll. above. The State shall be the sole insured of <br />this pOlicy. The outstanding loan amount payable to the State <br />shall be reduced in the amount of any payments made to the <br />State under this insurance coverage. If only a portion of the <br />outstanding loan amount is paid to the State under this policy, <br />the number of installment payments shall remain unchanged; <br />however, the amount of each payment shall be reduced. <br /> <br />13. <br />attached <br />herein. <br /> <br />Comply with the Construction Fund Program Procedures <br />hereto as Exhibit B and incorporated by reference <br /> <br />Page 3 of 7 Pages <br />