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<br />insurance so that said amounts at a minimum correspond to the amount established .by .the
<br />Colorado Governmental Immunity Act, now and as hereafter amended,
<br />
<br />5. BORROWER'S Indemnification Of The STATE. The BORROWER shall, without expense or legal
<br />liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and
<br />economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any
<br />liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any
<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
<br />limit for each occurrence and $2,000,000 general aggregate, including products/completed
<br />operations and personal injury,
<br />
<br />Said general liability insurance shall name the STATE as additional insured. A copy of a certificate
<br />of said insurance and an additional insured endorsement must be filed with the STATE, Evidence
<br />of current insurance coverage is to be provided as renewals occur, No loan funds shall be
<br />advanced by the STATE without evidence of said current 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 members 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 />
<br />a, To enter into and comply with the terms of this contract and the promissory note, and to pay
<br />the indebtedness,
<br />
<br />b. To levy and collect dues and assessments in an amount sufficient to pay the annual amounts
<br />due under this contract and to pledge those revenues and the BORROWER'S right to receive
<br />said revenues from its members for repayment of this loan, in accordance with the Pledge of
<br />Property Provisions herein,
<br />
<br />c, To place the dues and assessment revenues pledged to make annual loan payments in a
<br />special account separate and apart from other BORROWER revenues, in accordance with the
<br />Pledge of Property Provisions herein,
<br />
<br />d, To make annual payments in accordance with the promissory note,
<br />
<br />e, To make annual deposits to a debt service reserve fund in accordance with the Pledge of
<br />Property Provisions herein,
<br />
<br />f, To obtain a certificate of deposit to serve as collateral in the amount of one annual loan
<br />payment ($3,518,05) as security for the loan, and execute an assignment of certificate of
<br />deposit as described in the Collateral Provisions herein,
<br />
<br />g, To execute a Deed of Trust to convey a security interest to the STATE in the BORROWER'S new
<br />
<br />Smith I rrigation Ditch
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<br />Loan Contract
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