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annual payment into its debt service reserve fund on the due date of its first annual
<br />loan payment and annually thereafter for the first ten years of repayment of this
<br />loan. In the event that the BORROWER applies funds from this account to
<br />repayment of the loan, the BORROWER shall replenish the account within ninety
<br />(90) days of withdrawal of the funds.
<br />9. Collateral. The COLLATERAL for this loan is described in Section 6 (COLLATERAL) of the
<br />PROJECT SUMMARY, and secured by the SECURITY INSTRUMENT(S)
<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
<br />or 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
<br />by its representations herein, the BORROWER shall be estopped from asserting for
<br />any 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
<br />loan are not encumbered by any other deeds of trust or liens of any party other
<br />than the CWCB or in any other manner, except for any existing lien(s) identified in
<br />Section 5 (Schedule of Existing Debt) of the PROJECT SUMMARY, which sets forth
<br />the position of the lien created by this CONTRACT in relation to any existing lien(s).
<br />Documentation establishing the relative priorities of said liens, if necessary, is
<br />attached to the 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
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