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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 4
<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
<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, interest, and late charges, if any, on this loan immediately due
<br /> 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
<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.
<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 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
<br /> of 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
<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.
<br /> Loan Contract C150306
<br /> Page 4 of 11
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