Laserfiche WebLink
10. 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 property pledged to repay this loan. <br />11. Warranties. <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 />required by this contract. <br />b. The BoRROwER warrants that it has not employed or retained any company or <br />person, other than a bona fide employee working solely for the BORROWER to <br />solicit or secure this contract and has not paid or agreed to pay any person, <br />company, corporation, individual, or firm, other than a bona fide employee, any fee, <br />commission, percentage, gift, or other consideration contingent upon or resulting <br />from the award or the making of this contract. <br />c. The BoRROwER warrants that the Pledged Property and collateral for this loan are <br />not encumbered by any other deeds of trust or liens of any party other than the <br />CWCB or in any other manner, except for any pre-existing lien(s) identified in <br />Section 5(Schedule of Existing Debt) of the Project Summary, which sets forth <br />the position of the lien, created by this contract in relation to any pre-existing lien(s). <br />Documentation establishing the relative priorities of said liens, if necessary, is <br />attached to the Project Summary and incorporated herein. <br />12. Change of Ownership of Water Shares During Term of Contract. If the interest <br />rate for this loan is based on the CWCB's agricultural or blended agricultural and <br />municipal and/or commercial and/or industrial rates, the BoRROwER agrees to notify <br />the CWCB of any change of the ownership of the water rights represented by its <br />shares from irrigation to municipal or commercial or industrial use. The interest rate <br />shall 6e revised when said change in ownership would increase the original interest. <br />rate by 0.5% or more. The parties shall amend this contract, including a revised <br />promissory note, to effect said change in interest rate. <br />13. Remedies For Default. Upon default in the payments to be made by the BoRROwER <br />under this contract, or default in the performance of any covenant or agreement <br />contained herein, the CWCB, at its option, may: <br />a. suspend this contract and withhold further loan disbursements pending correcfiive <br />action by the BORROWER and if the BORROWER d02S not cure the default as <br />provided for below, permanently cease loan disbursements and deem the PRO�ECT <br />substantially complete; <br />b. declare the entire principal amount, accrued interest, and late charges, if any, then <br />outstanding immediately due and payable; <br />c. exercise its rights under any appendices to this contract, including, but not limited to, <br />the Promissory Note, Security Agreement, and/or any instrument securing collateral; <br />and/or <br />d. take any other appropriate action. <br />Page 4 of 9 <br />