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<br />, ,
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<br />and incorporated herein.
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<br />9. Collateral During Loan Repayment. The BORROWER shall not sell, convey, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral so
<br />long as any of the principal, accrued interest, and late charges, if any, on this loan
<br />remain unpaid, without the prior written concurrence of the CWCB. In the event of
<br />any such sale, transfer or encumbrance without the CWCB's written concurrence, the
<br />CWCB may at any time thereafter declare all outstanding principal, interest, and late
<br />charges, if any, on this loan immediately due and payable.
<br />
<br />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.
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<br />11. Warranties.
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<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.
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<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.
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<br />c. The BORROWER warrants that the Collateral for this loan is not encumbered by
<br />any 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 5 (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 existing lien(s). Documentation establishing the
<br />relative priorities of said liens, if necessary, is attached to the Project Summary
<br />and incorporated herein.
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<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 be 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.
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<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:
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