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-3- <br />(7) The obligation of this bond shall continue (unless cancelled pursuant to paragraph (3) <br />hereof) until released in writing by the State in accordance with applicable laws specifying bond <br />release procedures. The parties understand that periods of years may necessarily be required before <br />determination can be made that reclamation work has been satisfactorily completed. No revision, <br />extension, or renewal of the Operator's Notice of Intent to Explore, or of the time allowed the <br />Operator to complete reclamation shall diminish surety's obligation hereunder. No misrepresentation <br />by the Principal which may have induced the surety to execute this bond shall be any defense to <br />demand by the State under this agreement. <br />(8) The State may make demand upon the Surety for payment hereunder if the Board or <br />Division determines that reclamation which ought to have been performed pursuant to the plan by the <br />Principal, or its successors or assigns, remains unperformed and if surety forfeiture procedures <br />required by law have been initiated. No other condition precedent need be fulfilled to entitle the State <br />to receive the amount so demanded. However, if, upon completion of reclamation, the amounts <br />expended for reclamation shall be less than the amount received form the Surety, the excess shall be <br />promptly refunded to the Surety. <br />(9) If demand is made upon the Surety for payment of an amount due to the State <br />hereunder, and if the Surety fails to make payment of such amount within ninety (90) days after the <br />date of receipt of such demand by the Surety, and if it should thereafter be determined, by agreement <br />of the Surety or by final judgement of court, that the amount demanded was properly payable, Surety <br />agrees to pay the State, in addition to the amount demanded, interest at the prime rate in effect from <br />time to time at the First national Bank of Denver for the period commencing at the end of such ninety - <br />day period and ending on the date of actual payment. <br />(10) If the State shall notify the Surety that the Principal is in default and if the State shall <br />initiate any bond forfeiture procedures required by law or regulation, the surety may, in lieu of <br />making payment to the State of the amount due hereunder, cause the reclamation to be timely <br />performed in accordance with the plan. In such event, when and if the reclamation has been timely <br />performed to the satisfaction of the Board or Division, this bond shall be released. If the reclamation <br />shall not be so performed to the satisfaction of the Board or Division, this bond shall remain in full <br />force and effect. <br />(11) If this bond applies to land under the jurisdiction of the State Board of Land <br />Commissioners ( "Land Board "), and if this bond, in whole or in part, is accepted by the Land Board <br />as the bond required under its applicable law and procedures, then the Principal and the surety, having <br />requested that the State accept this single bond in lieu of the separate bonds which would otherwise be <br />required by the Colorado Mined Land Reclamation Board or Division and by the Land Board, hereby <br />agree that, notwithstanding any other provision hereof, or of law, this bond shall remain in full force <br />and effect until released by the Land Board. <br />(12) This agreement may be executed in multiple copies, each of which shall be treated as <br />an original, but together they constitute only one agreement, the validity and interpretation of which <br />shall be governed by the laws of Colorado. <br />