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� ►� ! 10. Warranties. a. The BoRROwER warrants that, by acceptance of the loan under this contract and by its representations herein, the BoRROwER shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loan to the CWCB as required by this contract. b. The BoRtzowER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the BORROWER to solicit or secure this contraet and has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or the making of this contract. c. The BoRROwER warrants that the Pledged Property and collateral for this loan are not encumbered by any other deeds of trust or liens of any party other than the CWCB or in any other manner, except for any existing lien(s) identified in Section 5 (Schedule of Existing Debt) of the Project Summary, which sets forth the position of the lien created by this contract in relation to any existing lien(s). Documentation establishing the relative priorities of said liens, if necessary, is attached to the Project Summary and incorporated herein. 11. Change of Ownership of Water Shares During Term of Contract. If the interest rate for this loan is based on the CWCB's agricultural or blended agricultural and municipal and/or commercial and/or industrial rates, the BoRROwER agrees to notify the CWCB of any change of the ownership of the water rights represented by its shares from irrigation to municipal or commercial or industrial use. The interest rate shall be revised when said change in ownership would increase the original interest rate by 0.5% or more. The parties shall amend this contract, including a revised promissory note, to effect said change in interest rate. 12. Remedies For Default. Upon default in the payments to be made by the BoRROwER under this contract, or default in the performance of any covenant or agreement contained herein, the CWCB, at its option, may: a. suspend this contract and withhold further loan disbursements pending corrective action by the BORROWER and if the BORROWER dOeS not cure the default as provided for below, permanently cease loan disbursements and deem the PRO�ECr substantially complete; b. declare the entire principal amount, accrued interest, and late charges, if any, then outstanding immediately due and payable; c. exercise its rights under any appendices to this contract, including, but not limited to, the Promissory Note, Security Agreement, and/or any instrument securing collateral; and/or d. take any other appropriate action. The CWCB shall provide written notice to the BoRROwER of any such default and shall give the BoRROwER an opportunity to cure within thirty (30) days of receipt of such notice. All remedies described herein may be simultaneously or selectively and successively enforced. The CWCB may enforce the provisions of this contract at its Page 4 of 9