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final disbursement of loan funds that the CWCB makes to the BoRROwER.
<br />3. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the
<br />PRO�ECT in accordance with the terms of this contract shall be remitted to the CWCB
<br />within 30 calendar days from notification from the CWCB of either (1) completion of the
<br />PROJECT or (2) upon the determination by the CWCB that the PRO�ECT will not be
<br />completed.
<br />4. Collateral. The collateral for this loan is described in Section 5(Collateral) of the
<br />Project Summary, and secured by the deed of trust attached hereto as Appendix 3
<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 princiqal, 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 />5. 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 />6. 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 frorn 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 collateral for this loan is not encumbered by any
<br />other deeds of trust or liens of any party other than the CWCB or in any other
<br />manner, except for any existing lien(s) identified in Section 6(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 pre-existing lien(s). Documentation establishing the
<br />relative priorities of said liens, if necessary, is attached to the Project Summary
<br />and incorporated herein.
<br />7. 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
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