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<br />--r. . <br /> <br />~.. , <br /> <br />8. The STATE has determined that the BORROWER has met the criteria set forth !l 37-60-130(3), CRS. <br />(1997). <br /> <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained, the <br />parties agree as follows: <br /> <br />A. The BORROWER agrees as follows: <br /> <br />1. Time For PROJECT Completion. The BORROWER recognizes that time is of the essence in the <br />performance of all of its obligations under this contract, and therefore shall complete its purchase of <br />the Shares no later than two (2) years from the date of this contract, The time for completion may be <br />extended subject to the approval of the STATE. The BORROWER must provide, in writing, documented <br />justification for any request for extension sixty days prior to the end of the period for completion. <br /> <br />2. BORROWER'S Liability Insurance. The BORROWEtR agrees to indemnify and hold the STATE harmless <br />from any liability incurred by the STATE as a re!Sult of the STATE'S interest in the PROJECT and any <br />other property identified jn the Collateral Provisions of this contract. Upon execution of this contract <br />and continuing until complete repayment of the loan is made to the STATE, the BORROWER shall <br />maintain commercial general liability insurance with a company that is satisfactory to the STATE <br />covering the management, operation, and maintenance of the PROJECT with minimum limits of <br />$1,000,000 combined single limit for each occurrence and $2,000,000 general aggregate, including <br />products/completed operations and personal injury. <br /> <br />Said general liability insurance shall name the SlATE as additional insured. A copy of a certificate of <br />said insurance and an additional insured endorsement must be filed with the STATE. Evidence of <br />current insurance coverage is to be provided as renewals occur. No loan funds shall be advanced by <br />the STATE without evidence of said current coverage. Throughout the term of this contract, the STATE <br />reserves the right to increase the above amOUl1t of insurance so that said amounts at a minimum <br />correspond to the amount established by the Colorado Governmental Immunity Act, now and as <br />hereafter amended. <br /> <br />3. BORROWER'S Authority To Contract. The BORROWER shall, pursuant to its statutory authority, <br />articles of incorporation, and by-laws, have its members and board of directors adopt resolutions, <br />irrepealable during the life of this loan, authorizing the President and Secretary, on behalf of the <br />BORROWER, to do the following: <br /> <br />a. To enter into and comply with the terms of this contract and the promissory note, and to pay the <br />indebtedness, and <br /> <br />b. To levy assessments in an amount sufficient to pay the annual amounts due under this contract <br />and to pledge revenues from membership fees and assessments and the BORROWER'S right to <br />receive said revenues to repay this loan, and <br /> <br />c. To place the membership fee and assessment revenues pledged to make annual loan payments <br />in a special account separate and apart from other BORROWER revenues, and to execute an <br />Assignment of Deposit Account as Security to convey a security interest in the account to the <br />STATE; and <br /> <br />d. To make annual payments in accordance with the promissory note, and <br /> <br />e. To make annual deposits to a debt service reserve fund in accordance with the Pledge of Property <br />Provisions of this contract, and <br /> <br />Arkansas Groundwater Users Association <br /> <br />Pag~ 2 of 10 <br /> <br />Loan Contract <br />