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<br />6. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the STA1"E, the BORROWER shall maln'tain commercial general <br />liability insurance with a company that is satisfactory to the STATE covering the management, <br />operation, and maintenance of the PROJECT facilities and any other property identified in the <br />Collateral Provisions of this contract with minimum limits of $1,000,000 combined single limit for <br />each occurrence and $2,000,000 general aggregate, including products/completed operations <br />and personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. The BORROWER shall <br />provide the STATE with a certificate of said insurance and an additional insured endorsement, and <br />shall provide the STATE with documentation of renewals of said insurance. The STATE will not <br />disburse any loan funds without evidence of said insurance coverage, Throughout the life of this <br />contract, the STATE reserves the right to increase the above amount of insurance so that said <br />amounts at a minimum correspond to the amount established by the Colorado Govemmental <br />Immunity Act, now and as hereafter amended. <br /> <br />7, BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory authority, <br />articles of incorporation and by-laws, have its stockholders and board of directors adopt <br />resolutions, irrepealable during the life of this loan, authorizing the President and Secretary, on <br />behalf of the BORROWER, to do the following: <br /> <br />a. To enter into and comply with the terms of this contract and the Promissory Note, and <br /> <br />b. To levy assessments in an amount sufficient to pay the annual amounts due under this <br />contract, and to pledge assessment revenues and the BORROWER'S right to receive said <br />revenues for repayment of the loan, and <br /> <br />c, To place the assessment revenues pledged to make annual loan payments in a special <br />account separate and apart from other BORROWER revenues in accordance with the Pledge of <br />Property Provisions of this contract, and <br /> <br />d, To make annual payments in accordance with the Promissory Note, and <br /> <br />e, To make annual deposits to a debt service reserve fund in accordance with the Pledge of <br />Property provisions of this contract, and <br /> <br />f, To execute a Deed of Trust to convey a security interest to the STATE in certain property <br />owned by the BORROWER equal in value to the full amount of the loan as security for the loan, <br />as described in the Collateral provisions of this contract, and <br /> <br />g, To execute a Security Agreement and an Assignment of Deposit Account as Security to <br />secure the revenues pledged herein in accordance with the Pledge of Property provisions of <br />this contract. <br /> <br />Said resolutions are attached hereto as Appendix 1 and incorporated herein. <br /> <br />8. Attorney's Opinion Letter, Prior to the execution of this contract by the STATE, the BORROWER <br />shall submit to the STATE a letter from its atlomey stating that it is the attorney's opinion that the <br />person signing for the BORROWER was duly elected or appointed and has authority to sign such <br />documents on behalf of the BORROWER and to bind the BORROWER; that the BORROWER'S <br /> <br />DeWeese-Dye Ditch & Reservoir Company <br /> <br />Page 4 of 13 <br /> <br />Loan Contract <br />