<br />I
<br />
<br />
<br />contract. Furthermore, such inspections shall cover the condition of the PROJECT, operating
<br />records, maintenance records, and financial records, and shall not be construed nor interpreted as '
<br />an approval of the actual design and/or construction of any element of the PROJECT facilities.
<br />
<br />17. Adhere To Applicable Laws. The BORROWER shall strictly adhere to all applicable federal, state,
<br />and local laws and regulations that are in effect or may hereafter be established throughout the
<br />term of this contract.
<br />
<br />18. No Discrimination Of Services. The services of said PROJECT shall be made available within its
<br />capacity and in accordance with all pertinent statutes, rules and regulations, and operational
<br />guidelines without discrimination as to race, color, religion, or national origin in accordance with a
<br />schedule of such rates formally adopted by the BORROWER, as may be modified from time to time.
<br />
<br />B. The STATE agrees as follows:
<br />
<br />1. Agreement To Loan Money. The STATE agrees to loan to the BORROWER an amount not to
<br />exceed that specified in the Promissory Note Provisions of this contract.
<br />
<br />2. Disbursements. After receipt of the periodic progress report from the BORROWER, and review
<br />and acceptance of the items therein as eligible expenses as described below, the STATE will pay
<br />to the BORROWER the amount set forth in the report or such portion that has been approved by the
<br />STATE, Such payment shall be made within thirty (30) days from the STATE'S approval of each
<br />progress report.
<br />
<br />3. Release After Loan Is Repaid. Upon complete repayment to the STATE of the entire principal, all
<br />accrued interest, and late charges, if an ,as s e ifi E agrees to
<br />o ee 0 trust to convey to the BORROWER all of the STATE'S right, title, and
<br />interest in and to the property described in the deed of trust, and to file a UCC-3 form with the
<br />Secretary of State to terminate all of the STATE'S rights in. and to the revenues pledged to repay
<br />this loan.
<br />
<br />C. The STATE and the BORROWER mutually agree as follows:
<br />
<br />1. Designated Agent Of The STATE. The eWCB, which includes its agents and employees, is
<br />hereby designated as the agent of the ST ATE for the purpose of this contract.
<br />
<br />2. ,Contract Is Not Assignable. This contract is not assignable by the BORROWER except with the
<br />prior written approval of the STATE.
<br />
<br />3. Contract Relationship. The parties to this contract intend that the relationship between them
<br />contemplated by this contract is that of lender-borrower, not employer-employee. No agent,
<br />employee, or servant of the BORROWER shall be, or shall be deemed to be, an employee, agent,
<br />or servant of the STATE. The BORROWER shall be solely and entirely responsible for its acts and
<br />the acts of its agents, employees, servants, engineering firms, construction f"lrms, and
<br />subcontractors during the performance of this contract.
<br />
<br />4. Complete Integration Of All Understandings. This agreement is intended as the complete
<br />integration of all understandings between the parties. No prior or contemporaneous addition,
<br />deletion, or other amendment hereto shall have any force or effect whatsoever unless embodied
<br />herein in writing. No subsequent novation, renewal, addition, deletion, or other amendment
<br />hereto shall have any force Or effect unless embodied in a written contract executed and approved
<br />pursuant to STATE fiscal rules, unless expressly provided for herein.
<br />
<br />5. In Event Of A Conflict. In the event of conflict between the terms of this contract and conditions
<br />as set forth in any of the appendices, the provisions of this contract shall control.
<br />
<br />6. Eligible Expenses. PROJECT costs eligible for financing by the STATE shall be limited to fifty
<br />percent (50%) of the cost of:
<br />
<br />.'-0,'
<br />
<br />The Consolidated Mutual Water Compa.ny
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<br />Page 7 of 11
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