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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 INSTRUMENTS(S) incorporated herein,
<br /> including the SECURITY AGREEMENT (APPENDIX 4), DEED OF TRUST (APPENDIX 5) and
<br /> STOCK ASSIGNMENT (APPENDIX 6).
<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
<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 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).
<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
<br /> Loan Contract C150379
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