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(90) days of withdrawal of the funds.
<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 5
<br />and incorporated herein.
<br />10. Collateral During Loan Repayment. The BORROWER shall not sell, convey,
<br />assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the
<br />Collateral or the Pledged Property so long as any of the principal, accrued interest,
<br />and late charges, if any, on this loan remain unpaid, without the prior written
<br />concurrence of the CWCB. In the event of any such sale, transfer or encumbrance
<br />without the CWCB's written concurrence, the CWCB may at any time thereafter
<br />declare all outstanding principal, interest, and late charges, if any, on this loan
<br />immediately due and payable.
<br />11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the
<br />entire principal, all accrued interest, and late charges, if any, as specified in the
<br />Promissory Note, the CWCB agrees to release and terminate any and all of the
<br />CWCB's right, title, and interest in and to the Collateral and the Pledged Properly.
<br />12. Warranties.
<br />a. The BoRROwER warrants that, by acceptance of the loan under this contract and
<br />by its representations herein, the BoRROwER shall be estopped from asserting for
<br />any reason that it is not authorized or obligated to repay the loan to the CWCB
<br />as 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
<br />fee, commission, percentage, gift, or other consideration contingent upon or
<br />resulting from the award or the making of this contract.
<br />c. The BoRROwER warrants that the Pledged Property and Collateral for this loan
<br />are not encumbered by any other deeds of trust or liens of any parly other than
<br />the CWCB or in any other manner, except for any existing lien(s) identified in
<br />Section 5(Schedule of Existing Debt) of the Project Summary, wtiich sets forth
<br />the position of the lien created by this contract in relation to any 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 />13. 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
<br />rate shall be revised when said change in ownership would increase the original
<br />interest rate by 0.5% or more. The parties shall amend this contract, including a
<br />revised promissory note, to effect said change in interest rate.
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