Laserfiche WebLink
<br />BORROWER; <br /> <br />b. there are no provisions in the BORROWER'S articles of incorporation or bylaws or any <br />state or local law that prevent this contract from binding the BORROWER; and <br /> <br />c. the contract will be valid and binding against the BORROWER if entered into by the <br />CWCB. <br /> <br />8. Pledge of Property. The BORROWER irrevocably pledges to the CWCB for purposes of <br />repayment of this loan the real property as described in Appendix 4, hereinafter <br />referred to as the "Pledged Property." <br /> <br />a. Establish Security Interest. The BORROWER has duly executed a Security <br />Agreement, attached hereto as Appendix 3 and incorporated herein, to provide a <br />security interest to the CWCB in the Pledged Property. The CWCB shall have <br />priority over all other competing claims for said Pledged Property, except for the <br />liens of the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing <br />Debt) of the Project Summary, which sets forth the position of the lien created by <br />this contract in relation to any existing lien(s). <br /> <br />b. Debt Service Reserve Account. To establish and maintain the debt service <br />reserve account, the BORROWER shall deposit an amount equal to one-tenth of an <br />annual payment into its debt service reserve fund on the due date of its first annual <br />loan payment and annually thereafter for the first ten years of repayment of this <br />loan. In the event that the BORROWER applies funds from this account to <br />repayment of the loan, the BORROWER shall replenish the account within ninety <br />(90) days of withdrawalofthe funds. <br /> <br />9. Collateral. The collateral for this loan is described in Section 6 (Collateral) of the <br />Project Summary, and secured by the instrument(s) attached hereto as Appendix 4 <br />and incorporated herein. <br /> <br />10. Collateral During Loan Repayment. The BORROWER shall not sell, convey, assign, <br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral or <br />the Pledged Property so long as any of the principal, accrued interest, and late <br />charges, if any, on this loan remain unpaid, without the prior written concurrence of <br />the CWCB. In the event of any such sale, transfer or encumbrance without the <br />CWCB's written concurrence, the CWCB may at any time thereafter declare all <br />outstanding principal, interest, and late charges, if any, on this loan immediately due <br />and payable. <br /> <br />11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire <br />principal, all accrued interest, and late charges, if any, as specified in the Promissory <br />Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title, <br />and interest in and to the Collateral and the Pledged Property. <br /> <br />12. Warranties. <br /> <br />a. The BORROWER warrants that, by acceptance of the loan under this contract and by <br />its representations herein, the BORROWER shall be estopped from asserting for any <br />reason that it is not authorized or obligated to repay the loan to the CWCB as <br />Loan Contract C150220 <br />Page 3 of 11 <br />