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6. BoRROweR's Liability Insurance. Upon executio� of this contract and continuing until complete <br />repayment of the loan is made to the STATE, the SoRROwER shalf maintain commercial general <br />liability insurance with a company that is satisfactory to the STnTE covering the management, <br />operation, and maintenance of the PROSeCT with minimum limits of $1,000,000 combined single fimit <br />for each occurrence and $2,OOQ000 general aggregate, including products(completed operations <br />and personal injury. <br />Said general liability insurance shall name the SrarE as additional insured. The BoRROwER shall <br />provide the STATE with an ACORD form 27 evidencing said insurance and an additional insured <br />endorsement, and shall provide the SrqTE with documentation of renewals of said insurance. The <br />STATe will not disburse any loan funds without evidence of said insurance coverage. 7hroughout the <br />life of this contract, the STarE reserves the right to increase the above amount of insurance so that <br />said amounts at a minimum correspond to the amount established by the Colorado Governmental <br />Immunity Act, now and as hereafter amended. <br />7. BortROweR's Authority To Contract. The BortrtowER shall, pursuant to its statutory authority, <br />artides of incorporation and by-laws, have its stockhofders and board of directors adopt resolutions, <br />irrepealable during the life of this loan, authorizing the President and Secretary, on behalf of the <br />BORROwER, to do the following: <br />a. To enter into and comply with the terms of this contract and the promissory note, and <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 />c. To place the assessment 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 atid <br />d. To make annual payments in accordance with the promissory note, and <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 />f. To execute a deed of trust to convey a security interest to the STArE in the proPerty described <br />in the Collateral Provisions herein, and <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 />Said resolutions are attached hereto as Appendix 1 and incorporaked herein. <br />8. Attorney's Opinion Letter. Prior to the execution of this contract by the SrqTE, the BORROwER <br />shall submit to the S'ra'fE a Ietter 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 o� behalf of the BoRROwER and to bind the BoRROwER; that the SostROwER's <br />shareholders and board of directors have validly adopted resolutions approving this contract; that <br />there are no provisions in the BoRROwER's articles of incorporation or by-laws or any state or local <br />law that prevent this contract from binding the BoRROwER; and that the contract wiil be valid and <br />bindi�g against the BoRROweR if entered into by the Sta,'rE. <br />Boulder B�.Left Hand Irngation Company Page 4 of 12 Loan Contract <br />