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<br />t~"':.. <br /> <br />.--\ <br /> <br />legal liability to the STATE, manage, operate, and maintain the PROJECT continuously in an <br />efficient and economical manner. The BORROWER agrees to indemnify and hold the STATE <br />harmless from any liability incurred by the STATE as a result of the STATE'S interest in the <br />PROJECT facilities and any other property identified in the Collaterai Provisions of this <br />contract. <br /> <br />6. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until <br />complete repayment of the loan is made to the STATE, the BORROWER shall maintain <br />commercial general liability insurance with a company that is satisfactory to the STATE <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 STATE as additional insured. The BORROWER <br />shall provide the STATE with an Acord Form 27 evidencing said insurance and an <br />additional insured endorsement, and shall provide the STATE with documentation of <br />renewals of said insurance, The STATE will not disburse any loan funds without evidence <br />of said insurance coverage. Throughout the life of this contract, the STATE reserves the <br />right to increase the above amount of insurance so that said amounts at a minimum <br />correspond to the amount established by the Colorado Govemmental Immunity Act, now <br />and as hereafter amended, <br /> <br />7. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory <br />authority, articles of incorporation and by-laws, have its stockholders and board of <br />directors adopt resolutions, irrepealable during the life of this loan, authorizing the <br />President and Secretary, on 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 <br />said revenues for repayment of the loan, and <br /> <br />c. To place the assessment revenues pledged to make annual loan payments in a <br />special account separate and apart from other BORROWER revenues in accordance with <br />the Pledge of 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 <br />of Property Provisions of this contract, and <br /> <br />f. To obtain a certificate of deposit to serve as collateral in the amount of one annual loan <br />payment as security for the loan, and execute an assignment of certificate of deposit <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 <br />to secure the revenues pledged herein in accordance with the Pledge of Property <br />Provisions of this contract. <br /> <br />Said resolutions are attached hereto as Appendix 1 and incorpora,ted herein. <br /> <br />Sterling Irrigation Company <br /> <br />Page 4 of 1 3 <br /> <br />Loan Contract <br />