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<br />. <br /> <br />. <br /> <br />., <br /> <br />manage, operate, and maintain the PROJECT continuously in an efficient and economical manner. <br /> <br />15, BORROWER'S Liability Insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the CWCB, the BORROWER shall maintain commercial general <br />liability insurance with a company that is satisfactory to the CWCB covering the management, <br />operation, and maintenance of the PROJECT with minimum limits of $1,000,000 combined single <br />limit for each occurrence and $2,000,000 general aggregate, including products/completed <br />operations and personal injury, Said general liability insurance shall name the CWCB as <br />additional insured. The BORROWER shall provide the CWCB with a certificate of said insurance <br />and an additional insured endorsement, and proof of renewals of said insurance. The CWCB <br />shall not disburse any loan funds without evidence of said insurance coverage. Throughout the <br />life of this contract, the CWCB reserves the right to increase the above amount of insurance, but <br />not exceeding the rate of increase of the United States Bureau of Labor Statistics Consumer Price <br />Index for the Denver-Boulder, Colorado All Item Index for All Urban Consumers (CPI-U) <br />maintained by the United States Department of Commerce. <br /> <br />B. LOAN PROVISIONS - OBLIGATIONS OF PARKS AND THE CWCB <br /> <br />1, Loan Provisions. The CWCB agrees to loan to PARKS an amount not to exceed the PARKS LOAN <br />AMOUNT at an interest rate of 0% per annum for a repayment term of thirty years, and PARKS <br />agrees to repay the loan in accordance with the Repayment Provisions of this contract. <br /> <br />2_ Loan Disbursements. The CWCB shall disburse PARKS' loan funds directly to the Borrower in <br />accordance with Section 4, (Disbursement Schedule) of the Project Summary, <br /> <br />3. PARKS' Authority To Contract. The PARKS Board has adopted a resolution, attached as <br />Appendix 6 and incorporated herein, authorizing the PARKS to perform in accordance with the <br />terms of this contract. <br /> <br />4, Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, PARKS shall <br />submit to the CWCB a letter from its attorney staling that it is the attorney's opinion that <br /> <br />a. the person signing for PARKS was duly elected or appointed and has authority to sign such <br />documents on behalf of PARKS and to bind PARKS; <br /> <br />b. the PARKS board has validly adopted a resolution approving this contract; <br /> <br />c. there are no provisions in any state or local law that prevent this contract from binding PARKS; <br />and <br /> <br />d. the contract will be valid and binding against PARKS if entered into by the CWCB, <br /> <br />5. Pledge Of Account. PARKS has deposited $900,000 into an interest-bearing account with the <br />State Treasurer ("PARKS ACCOUNT"). The funds contained in the PARKS ACCOUNT may only be <br />used for repayment of principal and interest on the loan made herein to PARKS. The State <br />Treasurer shall only release funds from the PARKS ACCOUNT upon receipt of a written request <br />from PARKS and the CWCB to transfer funds from the PARKS ACCOUNT to the CWCB Construction <br />Fund. PARKS hereby irrevocably pledges to the CWCB for purposes of repayment of this loan the <br />funds contained in the PARKS ACCOUNT, In the event that the PARKS ACCOUNT does not contain <br />sufficient funds for repayment of the principal and interest then due on the loan, PARKS shall repay <br />said principal and interest from any other funds legally available for that purpose. The CWCB <br />does not have and will not have any interest in the assets or facilities of the BORROWER for <br />repayment of the PARKS LOAN, and the PARKS LOAN shall be solely repaid by PARKS without any <br /> <br />Page 5 of 12 <br /> <br />-- <br />