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d. Builder's risk insurance for construction in progress for all perils of loss including fire, wind, hail, vandalism, and flood in an amount equal to the completed value of the PROJECT, Said general liability insurance shall name the BORROWER and the STATE as additional insured, An additional insured endorsement and a current copy of a certificate of said liability insurance must be provided to the STATE prior to commencement of construction and maintained until construction is complete, No payments shall be made to the BORROWER unless all insurance certificates are current. The BORROWER shall file notices of renewals of said poliCies with the ,STATE as renewals occur. During the time of construction, the STATE reserves the right to increase the above amount of insurance so that said amounts at a minimum correspond to the amount established by the Colorado Governmental Immunity Act, now and as hereafter amended, 5. BORROWER'S Indemnification of the STATE. The BORROWER shall, without expense or legal liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any other property identified in the Collateral Provisions of this contract. 6. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete repayment of the loan is made to the STATE, the BORROWER shall maintain commercial general liability insurance with a company that is satisfactory to the STATE covering the management, operation, and maintenance of the PROJECT with minimum limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general aggregate, including products/completed operations and personal injury. Said general liability insurance shall name the STATE as additional insured, The BORROWER shall provide the STATE with a certificate of said insurance and an additional insured endorsement, and shall provide the STATE with documentation of renewals of said insurance, The STATE will not disburse any loan funds without evidence of said insurance coverage. Throughout the life of this contract, the STATE reserves the right to increase the above amount of insurance so that said amounts at a minimum correspond to the amount established by the Colorado Governmental Immunity Act, now and as hereafter amended, 7. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory authority, articles of incorporation and by-laws, have its stockholders and board of directors adopt resolutions, irrepealable during the life of this loan, authorizing the President and Secretary, on behalf of the BORROWER, to do the following: a, To enter into and comply with the terms of this contract and the promissory note, and b, To levy assessments in an amount sufficient to pay the annual amounts due under this contract, and to pledge assessment revenues and the BORROWER'S right to receive said revenues for repayment of the loan, and c, To place the assessment revenues pledged to make annual loan payments in a special account separate and apart from other BORROWER revenues in accordance with the Pledge of Property Provisions of this contract, and d, To make annual payments in accordance with the promissory note, and The Model Land & Irrigation Company Page 4 of 13 Loan Contract