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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, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral or
<br />the 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 of the
<br />CWCB. In the event of any such sale, transfer or encumbrance without the CWCB's
<br />written concurrence, the CWCB may at any time thereafter declare all outstanding
<br />principal, interest, and late charges, if any, on this loan immediately due and payable.
<br />11. 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 Pledged Property.
<br />12. 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 solicit
<br />or secure this contract and has not paid or agreed to pay any person, company,
<br />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
<br />CWCB or in any other manner, except for any existing lien(s) identified in Section 5
<br />(Schedule of Existing Debt) of the Project Summary, which sets forth the position of
<br />the lien created by this contract in relation to any existing lien(s). Documentation
<br />establishing the relative priorities of said liens, if necessary, is attached to the
<br />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 the
<br />CWCB of any change of the ownership of the water rights represented by its shares
<br />from irrigation to municipal or commercial or industrial use. The interest rate shall be
<br />revised when said change in ownership would increase the original interest rate by
<br />0.5% or more. The parties shall amend this contract, including a revised promissory
<br />note, to effect said change in interest rate.
<br />14. 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
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