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<br />During the time of construction, the STATE reserves the right to increase the above amount <br />of insurance so that said amounts at a minimum correspond to the amount established by <br />the Colorado Governmental Immunity Act, now and as hereafter amended. <br /> <br />5. BORROWER'S Indemnification Of The STATE. The BORROWER shall, without expense or <br />legal liability to the STATE, manage, operate, and maintain the PROJECT continuously in an <br />efficient and economical manner. The BoRROWER agrees to indemnify and hold the STATE <br />harmless from any liability incurred by the STATE as a result of the STATE'S interest in the <br />PROJECT facilities and any other propertY identified in the Collateral Provisions of this <br />contract. <br /> <br />6. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until <br />complete repayment of the loan is made to the STATE, the BORROWER shall maintain <br />commercial general liability insurance with a company that is satisfactory to the STATE <br />covering the management, operation, and maintenance of the PROJECT with minimum limits <br />of $1 ,000,000 combined single limit for each occurrence and $2,000,000 general aggregate, <br />including products/completed operations arld personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. The BORROWER <br />shall provide the STATE with a certificale of said insurance and an additional insured <br />endorsement, and shall provide the Sl-ATE with documentation of renewals of said <br />insurance. The STATE will not disburse anY loan funds without evidence of said insurance <br />coverage. Throughout the life of this contract, the STATE reserves the right to increase the <br />above amount of insurance so that said amounts at a minimum correspond to the amount <br />established by the Colorado Governmental Immunity Act, now and as hereafter amended. <br /> <br />7. BORROWER'S Authority To Contract. ,-he BORROWER shall, pursuant to its statutory <br />authority, articles of incorporation and by-lclWS, have its stockholders and board of directors <br />adopt resolutions, irrepealable during the life of this loan, authorizing the President and <br />Secretary, on behalf of the BORROWER, to dO the following: <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note, and <br /> <br />b. To levy assessments in an amount sufficient to pay the annual amounts due under this <br />contract, and to pledge assessment revenues and the BORROWER'S right to receive said <br />revenues for repayment of the loan, and <br /> <br />c. To place the assessment revenues pledged to make annual loan payments in a special <br />account separate and apart from othsr BORROWER revenues in accordance with the <br />Pledge of Property Provisions of this cor1tract and <br /> <br />d. To make annual payments in accordance with the promissory note, and <br /> <br />e. To make annual deposits to a debt serVice reserve fund in accordance with the Pledge <br />of Property Provisions of this contract, and <br /> <br />f. To execute a deed of trust to convey a security interest to the STATE in the property <br />described in the Collateral Provisions herein, and <br /> <br />g. To execute a Security Agreement and an Assignment of Deposit Account as Security to <br /> <br />Leroux Creek Water Users' Association <br /> <br />Page 4 of 13 <br /> <br />Loan Contract <br />