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<br />During the time of construction, the STATE reserves the right to increase the above amount of <br />insurance so that said amounts at a minimum correspond to the amount established by the <br />Colorado Govemmentallmmunity 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 <br />and economical manner, The BORROWER agrees to indemnify and hold the STATE harmless <br />from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT <br />facilities and any 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 <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 and personal injury. <br /> <br />Said general liability insurance shall name the STATE as additional insured. A copy of a <br />certificate of said insurance and an additional insured endorsement must be filed with the <br />STATE. Evidence of current insurance coverage is to be provided as renewals occur. No <br />loan funds shall be advanced by the STATE without evidence of said current coverage, <br />Throughout the life of this contract, the STATE reserves the right to increase the above <br />amount of insurance so that said amounts at a minimum correspond to the amount <br />established by the Colorado Govemmentallmmunity Act, now and as hereafter amended. <br /> <br />7. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory <br />authority, articles of incorporation, and by-laws, have its stockholders and board of directors <br />adopt resolutions, irrepealable during the life of this loan, authorizing the President anc; <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 to <br />pay the indebtedness, and <br /> <br />b. To levy and collect assessments in an amount sufficient to pay the annual amounts due <br />under this contract and to pledge assessment revenues and the BORROWER'S right to <br />receive said revenues from its shareholders for repayment of this loan, in accordance with <br />the Pledge of Property Provisions herein, and <br /> <br />c. To place the assessment revenues pledged to make annual loan payments in a special <br />account separate and apart from other BORROWER revenues, in accordance with the <br />Pledge of Property Provisions of this contract 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 of <br />Property Provisions of this contract, and <br /> <br />f. To obtain a certificate of deposit to serve as collateral in the amount of one annual loan <br /> <br />The Wood Lake Mutual <br />Water and Irrigation Company <br /> <br />Page 4 of 14 <br /> <br />Loan Contract. <br />