PROJC01288

• Contract/PO #: C153714
• Contractor Name: Hay-Bretherton Ditch Company
• Contract Type: Loan
• Water District: 43
• County: Rio Blanco
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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Said general liability insurance shall name the STATE as additional insured. A copy of a certificate of
said liability insurance must be filed with the STATe prior to the disbursement of any loan funds. Throughout
the life of this contract, the State reserves the right to increase the above amount of insurance so that said
amounts at a minimum correspond to the amount established by the Colorado Governmental Immunity Act, now
and as hereafter amended. Evidence of renewal of said liability insurance is to be submitted to the STATE when
such renewals are made.

6. Remedies for default. Upon default in the payments herein set forth to be made or default in the
performance of any covenant or agreement contained herein, the STATE, at its option, may:

a. declare the entire principal amount and accrued interest then outstanding immediately due and
payable;

b. for the account of the OBLIGORS, incur and pay reasonable expenses for repair, maintenance, and
operation of the PROJECT herein described and such expenses as may be necessary to cure the cause
of default;

c. take possession of the PROJECT, repair, maintain, and operate or lease it;

d. act upon the deed of trust and promissory note;

e. take any other appropriate action.

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All remedies described herein may be simultaneously m Gelectively and successively enforced. The
provisions of this contract may be enforced by the STATE at (rs option without regard to prior waivers of
previous defaults, through judicial proceedings to require specific'.,erformance of this contract, or by such other
proceedings in law or equity as may be deemed necessary by thf' STATE to ensure compliance with provisions
of this contract and the laws and regulations under whic~ th's, contract is executed.

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7. No sale or conveyance of any collateral until the 10.3[1 is .repaid. The OBLIGORS shall not sell, convey,
assign, grant, transfer, mortgage, pledge, encumber, or otM~\iyi5e dispose of any collateral for this loan or the
PROJECT or any portion thereof or, in accordance with the ccndi'lions of the CWCB's approval of this loan, the
property on which the OBLIGORS' water from the Lower Hay-BrE\therton Ditch is being used, so long as any of
the principal and any accrued interest required by the Promissory-Note Provisions of the contract remain unpaid,
without the prior written concurrence of the STATe. .'..
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8. In event of a conflict. In the event of conflict between the terms of this contract and conditions as set
forth in any of the appendices, the provisions of this contract shall control.

9. Periodic inspections. The BORROWER and the OBLIGORS shall permit a designated representative of the
STATE to make periodic inspections of the PROJECT construction, operations and accounts. Any such
inspections by the STATE are solely for the purpose of verifying compliance with the terms and conditions of
the contract and shall not be construed nor interpreted as an approval of the actual design andlor construction
of any element of the PROJECT.

10. Adhere to applicable laws. The BORROWER and the OBLIGORS shall strictly adhere to all applicable
federal, state, and local laws and regulations that have been or may hereafter be established.

11. No discrimination of services. The services of said PROJECT will be made available within its capacity
and in accordance with all pertinent statutes, rules and regulations, and operational guidelines to all persons
in the BORROWER'S service area without discrimination as to race, color, religion, or national origin at reasonable
charges (including assessments or fees). whether for one or more classes of service, in accordance with a
schedule of such charges formally adopted by the BORROWER, as may be modified from time to time.

HAY-BRETHERTON DITCH COMPANY

Page 4 of 8

LOAN CONTRACT