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<br />.. <br /> <br />other property identified in the Collateral Provisions of this contract <br /> <br />6. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the STATE, the BORROWER shall maintain commercial general <br />liability insurance with a company that is satisfactory to the STATE covering the management, <br />operation, and maintenance of the PROJECT with minimum limits of $1,000,000 combined single limit <br />for 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 reseNes 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 Governmental <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 board of directors adopt resolutions, irrepealable during <br />the life of this loan, authorizing the President and Secretary, on behalf of the BORROWER, to do the <br />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 contract, <br />and to pledge assessment revenues and the BORROWER'S right to receive said revenues for <br />repayment of the loan, and <br /> <br />c, To place the as'sessment revenues pledged to make annual loan payments in a special account <br />separate and apart from other BORROWER revenues in accordance with the Pledge of Property <br />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 seNice reseNe fund in accordance with the Pledge of <br />Property Provisions of this contract, and <br /> <br />f. To obtain a certificate of deposit to seNe as collateral in the amount of one annual loan payment <br />as security for the loan, and to execute an assignment of certificate of deposit as described in the <br />Collateral Provisions of this contract, and <br /> <br />g, To execute a Security Agreement and an Assignment of Deposit Account as Security to secure <br />the revenues pledged herein in accordance with the Pledge of Property Provisions of this <br />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 attorney 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 board of <br />directors has validly adopted resolutions approving this contract; that there are no provisions in the <br />BORROWER'S articles of incorporation or by-laws or any state or local law that prevent this contract <br /> <br />Farmers Pawnee Canal Company <br /> <br />Page 4 of 13 <br /> <br />Loan Contract <br />