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<br />during the term of this contract to levy assessments sufficient to pay this loan as
<br />required by the terms of this contract and the Promissory Note, to cover all
<br />expenditures for operation and maintenance and emergency repair services, and to
<br />maintain adequate debt service reserves. In the event the assessments levied by
<br />the BoRROwER become insufficient to assure such repayment to the CWCB, the
<br />BoRROwER shall immediately take all necessary action consistent with its statutory
<br />authority, its articles of incorporation and bylaws including, but not limited to, levying
<br />additional assessments to raise sufficient revenue to assure repayment of this loan.
<br />d. 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 withdrawal of the funds.
<br />7. 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 5
<br />and incorporated herein.
<br />a. The BoRROwER shall not sell, convey, assign, grant, transfer, mortgage, pledge,
<br />encumber, or otherwise dispose of the collateral for this loan, including the
<br />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
<br />of the CWCB. In the event of any such sale, transfer or encumbrance without
<br />the CWCB's written concurrence, the CWCB may at any time thereafter declare
<br />all outstanding principal, interest, and late charges, if any, on this loan
<br />immediately due and payable.
<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 collateral and the property pledged to repay this loan.
<br />9. 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 sec�;re 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
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