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<br />. <br /> <br />. <br /> <br />, -\viI <br /> <br />~,,-:.::' <br />......-...' <br /> <br />~ <br />....... <br /> <br />, <br /> <br />WHEREAS. the State finds that it is necessary to loan the <br />Contractor one hundred percent (lOot) of the amount of the <br />outstanding loan to make it financially possible for the <br />Contractor to repurchase the loan and that the Contractor has <br />demonstrated its ability to repay by virtue of its previous <br />record with Interior Bnd that a Construction Fund loan to the <br />Contractor is feasible for this stated propose and in the <br />public interest: and <br /> <br />WHEREAS. the State has authority to enter this agreement <br />pursuant to section 37-60-119 and 37-60-122(1). CRS; and <br /> <br />WHEREAS. pursuant to <br />Contractor has authority <br />that a Resolution be d <br />to levy assessments BSSU <br />to the terms of the contr <br /> <br />WHEREAS. pursuant to section 37-60-120. the State is <br />required to assure repayment of loan funds ~~:~ntractor: <br />and ~ \~;:\ './.. <br />'" \}~~ \, :~: '\ \" :', ,,\ <br />contft\torlS Bylaws. the <br />.ntr .r,' ,_ to bor'~ow'\.~~ne.y: provided <br />d y, tb.e Board Qt.-Directors and <br />gi:' pa~roent 'of tb~. State according <br />'. "and: ',>' '. <br /> <br /> <br />NOW. THEREFORE. in consideration of the mutual and <br />dependent covenants herei~:contained. it is agreed by the <br />parties hereto as follows: <br /> <br />A. The Contractor agrees that it shall: <br /> <br />1. Use funds loaned by the State for the sole purpose of <br />repurChasing its small project loan obligation from Interior <br />before August 18. 1988. This loan shall not be used by the <br />Contractor for any other purpose. In the event that repurchase <br />is not'pccomplished by August 18. 1988. the Contractor shall <br />immediately repay this loan amount to the State. <br /> <br />2. prior to the execution of this contract. adopt a <br />resolution consistent with its Bylaws to authorize the <br />incurring of this debt. the levy of assessments to repay the <br />debt. and the execution of security to assure repayment to the <br />State. <br /> <br />3. Without expense to the, State. manaqe. operate. and <br />maintain the project continuously in an efficient and <br />economical manner. and assume all legal liability for such <br />management. operation. and maintenance. The Contractor agrees <br />to indemnify and hold the State harmless from any liability as <br />a result of the State's interest in the project. <br /> <br />4. Pursuant to its Bylaws. continue its service charges <br />and levy assessments or adjust as necessary to provide <br />sufficient funds for adequate operation and maintenance. <br />emergency repair services. obsolescence reserves. and debt <br />reserves. and to assure repayment of the'project loan to the <br />State as provided herein. <br /> <br />5. Make the services of said project available within its <br />capacity to all persons in the Contractor's service area <br />without discrimination as to race. color. religion. or natural <br />origin at reasonable charqes (inClUding assessments. taxes. or <br />fees), whether for one or more classes of service. -in <br />accordance with a schedule of such charges formally adopted by <br />the Contractor through its-Board. as may be modified from time <br />to time. The current rate schedule must be approved by the <br />State. Thereafter. the Contractor may. subject to the approval <br />of the State. make such modifications to the rate schedule as <br />the Contractor deems necessary to efficiently and economically <br />provide for the financial requirements of the system as long as <br />the rate schedule remains reasonable and non-discriminatory. <br /> <br />Page ~ of I Pages <br />