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<br />of assessments in an amount sufficient to repay and assure <br />repayment of the loan. and the signing of the security interest <br />in such assessments. Such resolution shall be attached hereto <br />and incorporated herein as Exhibit C. The above conditions <br />must be performed by the Contractor prior to the State <br />performance under this contract. <br /> <br />11. Pursuant to section 7-42-104. C.R.S. (1986). and to its <br />Articles of Incorporation and to its By-laws. the Contractor. <br />through either its shareholders or its Board of Directors. <br />shall take all necessary actions consistent therewith to levy <br />assessments to raise sufficient funds to pay this contract loan <br />debt in a timely manner and as required by the terms and <br />conditions herein to assure repayment of the project loan to <br />the State. In the event that the assessment(s) levied by the <br />Contractor. or the revenues reSUlting therefrom. are or become <br />insufficient to assure repayment to the State as required by <br />the terms and conditions herein. then the Contractor. upon <br />written notice thereof from the State. shall immediately take <br />all necessary action consistent with its By-laws and section <br />7-42-104. C.R.S. (1986). including but not limited to <br />additional assessments, to raise sufficient revenue to assure <br />repayment of the project loan to the State. <br /> <br />12. Provide the State with such periOdic reports as the <br />State may require and permit periOdic inspections of its <br />operations and accounts by a designated representative of the <br />State. <br /> <br />13. Repay to the State the total sum of One Hundred Fifteen <br />Thousand Two Hundred Ninety-Three Dollars and Seventy-Five <br />Cents ($115.293.75). which includes the project loan amount <br />with interest at the rate of five percent (5\) per annum. said <br />repayment to be made in constant annual installments of Four <br />Thousand six Hundred Eleven Dollars and Seventy-Five Cents <br />($4.611.75) each. for Twenty-Five (25) years. as shown in <br />Exhibit D. attached hereto and incorporated by reference <br />herein. Which first installment shall be due and payable on the <br />first day of the month next succeeding the month in which the <br />State determines that the project has been substantially <br />completed. and yearly thereafter -until the entire principal sum <br />shall have been paid. However. in the event the Contractor <br />does not draw funds commencing on the date specified in <br />paragraph C.I.a. below. the Obligation to repay shall be <br />postponed for the same number of months as the Contractor <br />delays in drawing funds. Said installment payments shall be <br />made payable to the Colorado Water Conservation Board. payable <br />at the offices of said Board in Denver, Colorado. <br /> <br />14. As security for the loan to be made to it by the <br />State. execute a Deed of Trust within thirty (30) days of the <br />substantial completion of the project that shall convey to the <br />State an undivided fifty percent (50\) of the following: <br /> <br />(a) 180 lineal feet of 24" diameter. 80 p.s.i. <br />plastic irrigation pipe. <br /> <br />(b) 3600 lineal feet of 21" diameter. 80 p.s.i. <br />plastic irrigation pipe together with all appurtenant <br />structures. bends. fittings. thrust blocks and <br />drainage pipes required for the proper installation of <br />the pipe quantitites shown above. <br /> <br />15. Obtain and maintain general fire and hazard insurance <br />on the project in an amount not less than the outstanding <br />amount of the loan made by the State to the Contractor until <br />the Contractor has repaid the loan in full under the terms of <br />paragraph A.13. above. The State shall be the sole insured of <br />this policy. The Contractor shall submit certificates of <br />insurance evidencing such insurance pOlicies to the State at <br /> <br />Page ~ of li Pages <br />