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<br />7. Collateral During Loan Repayment. The BORROWER shall not sell, convey, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged
<br />Revenues, so long as any of the principal, accrued interest, and late charges, if any,
<br />on this loan remain unpaid, without the prior written concurrence of the CWGB. In
<br />the event of any such sale, transfer or encumbrance without the CWCB's written
<br />concurrence, the CWCB may at any time thereafter declare all outstanding principal,
<br />interest, and late charges, ifany, on this loan immediately due and payable.
<br />
<br />8. 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 revenues pledged to repay this loan.
<br />
<br />9. 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 />required by this contract.
<br />
<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 />
<br />c. The BORROWER warrants that the Pledged Revenues and collateral for this loan
<br />are 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 Iien(s).
<br />Documentation establishing the relative priorities of said liens, if necessary, is
<br />attached to the Project Summary and incorporated herein.
<br />
<br />10. 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 ag'reement
<br />contained herein, the CWGB, at its option, may:
<br />
<br />a. suspend this contract and withhold further loan disbursements per.tding corrective
<br />action by the BORROWER, and if the BORROWER does not cure the default as
<br />provided for below, permanently cease loan disbursements and deem the PROJECT
<br />substantially complete;
<br />
<br />b. declare the entire principal amount, accrued interest, and late charges, if any, then
<br />outstanding immediately due and payable;
<br />
<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 />
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