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-'. amount of the interest accrued during PROJECT completion shall be calculated by the STATE and the BORROWER shall repay that amount to the STATE either within ten (10) days after the date the STATE determines that the PROJECT has been substantially completed, or, at the STATE'S discretion, the amount shall be deducted from the final disbursement of loan funds that the STATE makes to the BORROWER. b. Final loan amount. In the event that the final loan amount is less than the authorized loan amount, the STATE shall apply the remaining loan funds to prepayment of the loan if the remaining funds equal less than 10% of the authorized loan amount. If the remaining loan funds equal more than 10% of the authorized loan amount, the STATE may apply those funds to prepayment of the loan with the BORROWER'S consent, or the parties may execute a REVISION LETTER as described below to document the final loan amount. When applying any remaining loan funds to prepayment of the loan, the STATE shall reamortize the actual amount disbursed over a reduced term, with the annual payment amount remaining unchanged. 7. Warranties. The TOWN and the BORROWER warrant the following: a. By the Borrower's acceptance of the loan money pursuant to the terms of this contract and by their representations herein, the TOWN and the BORROWER shall be estopped from asserting for any reason that the BORROWER is not authorized or obligated to repay the loan money to the STATE as required by this contract. b. Both the BORROWER and the TOWN have full power and authority to enter into this contract. The execution and delivery of this contract and the performance and observation of its terms, conditions and obligations have been duly authorized by all necessary actions of the BORROWER and the TOWN. c. The BORROWER and the TOWN have not employed or retained any company or person, other than a bona fide employee working SOlely for the BORROWER and/or-the TOWN, to solicit or secure this contract. The BORROWER and the TOWN have not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee. any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or the making of this contract. d. The Town of Georgetown Water and Sanitation Enterprise Fund is an enterprise legally created and maintained in compliance with S 37-45.1-101, et seq., C.RS., and Article X, Section 20 of the Colorado Constitution, and has authority to enter into this contract with the STATE. The BORROWER and/or the TOWN shall immediately notify the STATE in writing if the circumstances which formulate the basis of this warranty change. e. The BORROWER and the TOWN agree not to terminate or dissolve the BORROWER, nor adversely withdraw or deplete its assets, nor otherwise adversely affect the BORROWER'S ability to perform during the term of this contract. The collateral identified in the Collateral Provisions of this contract is not encumbered by any other liens or in any other manner. f. The specific revenues to be pledged to repay the STATE under this contract shall be water user charges and fees, the establishment of which have been authorized by ordinance of the TOWN. The BORROWER hereby pledges sufficient annual revenues to pay the annual installment amount pursuant to the Promissory Note provisions of this contract, and hereby agree to establish a separate account into which all such moneys shall be deposited. 8. Pledge of revenues. The BORROWER hereby irrevocably pledges to the STATE, for purposes of repayment of this loan, water system revenues levied for that purpose as authorized by resolution or ordinance of the TOWN. Further, the TOWN and the BORROWER agree to: Town of Georgetown & Town of Georgetown Water and Sewer Activity Enterprise Page40f11