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<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 Appendices
<br />4-66 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
<br />the CWCB. In the event of any such sale, transfer or encumbrance without the
<br />CWCB's written concurrence, the CWCB may at any time thereafter declare all
<br />outstanding principal, irtterest, and late charges, if any, on this loan immediately due
<br />and payable. See also Appendix 1, Sections 7.2 and 7.3.
<br />11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the
<br />entire principal, all accrued irrterest, 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 Coilateral and the Piedged Property.
<br />12. Warranties.
<br />a. The BORROWER wafYant3 that, by acceptance of the toan under this contract and
<br />by its representations herein, the BortrtowER shall be estopped from asserting
<br />for any reason that it is not authorized or obligated to repay the loan to the
<br />CWCB as required by this contract.
<br />b. The BoRROw� warrants that it has not employed or retained any company or
<br />person, other than a bona fide employee working so{ely far the BoRROwER, to
<br />solicit or secure this oontract and has not paid or agreed to pay any person,
<br />company, corporation, individual, or firm, o�ther thart a bona fide employee, any
<br />fee, commission, percer�tage, gift, or other c�nsideratian contingent upon or
<br />resulting from the award or the making of this c�ntract.
<br />c. The BoRROVUER warrants that the Pledged Property and Ca{laterai for this loan
<br />are not encumbered by arty other deeds af trust or liens o�F any party other than
<br />the CWCB or in any other manner, exc�pt for any existing lien(s) identified in
<br />Seetion 5(Schedule of Existing Debt) of the Project Su�y, which sets forth
<br />the position of the lien created by this c�rrtr� in relation to any existing lien(s).
<br />Documerrtation establishing the relative prioritiea o� said liens, if necessary, is
<br />attached to the Project Summary and incorporated herein.
<br />13. Change of Ownership af Wster �hares During 7erm of Contract. If the interest
<br />rate for this loan is based on fhe CWCB's agricu(turat or bter�ed 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 rigtrts represented by its
<br />shares from irrigation to municipat cx commerciat or industriaf use. The irrterest rate
<br />shall be revised when said change in ownership would incxease the original interest
<br />rate by 0.5% or more. The partiea shall amend this conVact, including a revised
<br />promissory note, to effect said change in interest rate.
<br />Loan Contract C 150240
<br />Page 4 of 11
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