<br />,.......,
<br />, '.
<br />
<br />the prior written approval of the STATE,
<br />
<br />3. Contract Relationship. The parties to this contract intend that the relationship between them
<br />contemplated by this contract is that of lender-borrower, not employer-employee, No agent,
<br />employee, or servant of the BORROWER shall be, or shall be deemed to be, an employee,
<br />agent, or servant of the STATE. The BORROWER shall be solely and entirely responsible for its
<br />acts and the acts of its agents, employees, servants, engineering firms, construction firms,
<br />and subcontractors during the performance of this contract,
<br />
<br />4. Complete Integration Of All Understandings. This agreement is intended as the complete
<br />integration of all understandings between the parties, No prior or contemporaneous addition,
<br />deletion, or other amendment hereto shall have any force or effect whatsoever unless
<br />embodied herein in writing. No subsequent novation, renewal, addition, deletion, or other
<br />amendment hereto shall have any force or effect unless embodied in, a written contract
<br />executed and approved pursuant to STATE fiscal rules, with the exception of the Revision
<br />Letter as described in the Changes Provision of this contract.
<br />
<br />5. In the Event Of A Conflict. In the event of a conflict between the terms of this contract and
<br />conditions as set forth in any of the appendices, the provisions of this -contract shall control.
<br />
<br />6. Eligible Expenses. PROJECT costs eligible for financing by the STATE shall be limited to 25%
<br />of the cost of:
<br />
<br />a. Preparing final designs and specifications for the PROJECT.
<br />
<br />b. Preparing bid and construction contract documents.
<br />
<br />c, Preparing environmental assessment or environmental impact statements, and otherwise
<br />complying with the Federal National Environmental Policy Act. ,
<br />
<br />d, Complying with all federal, state, and local regulatory requirements, including the obtaining
<br />of all required permits.
<br />
<br />e. Fish and wildlife mitigation measures required by federal, state, or local laws and
<br />regulations.
<br />
<br />f. Actual construction as called for in the design documents and in change orders approved
<br />by the STATE, the BORROWER, the CONSULTANT and the CONSTRUCTION FIRM,
<br />
<br />g. Engineering services for construction management, including design and construction
<br />management for STATE-approved change orders,
<br />
<br />h, Legal services for reviewing engineering services contracts, reviewing this contract,
<br />reviewing construction contract documents, and for complying with all federal, state, and
<br />local regulatory requirements,
<br />
<br />6. STATE May Release Contract. In its sole discretion, the STATE may at any time give any
<br />consent, deferment, subordination, release, satisfaction, or termination of any or all of the
<br />BORROWER'S obligations under this contract, with valuable consideratiDn, upon such terms and
<br />conditions as the STATE may determine to be advisable to further the purposes of this contract
<br />or to protect the STATE'S financial interest therein, and consistent with both the statutory
<br />purposes of this contract and the limitations of the statutory authority under wnich it is made,
<br />
<br />7. Casualty And Eminent Domain. If, at any time, during the term of this contract, (a) the
<br />BORROWER'S PROJECT facilities including buildings or any portion thereof, are damaged or
<br />destroyed, in whole or in part, by fire or other casualty, or (b) title to or use of the PROJECT
<br />
<br />Chilco:t Ditch Company
<br />
<br />Page 9 of 13
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