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payment due to the District: $63,500 and $10 per shareholder. MVIC has never failed to <br /> make a payment. If that were to occur, the DWCD could withhold project water <br /> deliveries and impose penalties for delinquency. 1977 Contract ¶¶ 9-10. Finally, the <br /> CWCB expressly has collateral over the subject of the CWCB Loan: MVIC's irrigation <br /> system improvements. <br /> For all of the above reasons, we see no impediment to MVIC continuing its irrigation <br /> system improvements through CWCB financing. Please let us know if you have any <br /> questions or if you'd like further information. Thank you. <br /> Sincerely, <br /> ;24 <br /> Kent Holsinger <br /> 2 <br />