Laserfiche WebLink
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 />14. Remedies for Default. Upon default in the payments to be made by the BORROWER <br />under this CONTRACT, or default in the performance of any covenant or agreement <br />contained herein, the CWCB, at its option, may: <br />a. suspend this CONTRACT and withhold further loan disbursements pending <br />corrective action by the BORROWER, and if the BORROWER does not cure the default <br />as provided for below, permanently cease loan disbursements and deem the <br />PROJECT substantially complete; <br />b. declare the entire principal amount, accrued interest, and late charges, if any, then <br />outstanding immediately due and payable; <br />c. exercise its rights under any appendices to this CONTRACT, including, but not <br />limited to, the PROMISSORY NOTE, SECURITY AGREEMENT, DEEDS OF TRUST and/or <br />any instrument securing COLLATERAL; and/or <br />d. take any other appropriate action. <br />The CWCB shall provide written notice to the BORROWER of any such default and <br />shall give the BORROWER an opportunity to cure within thirty (30) days of receipt of <br />such notice. All remedies described herein may be simultaneously or selectively and <br />successively enforced. The CWCB may enforce the provisions of this CONTRACT at its <br />option without regard to prior waivers of previous defaults by the BORROWER, through <br />judicial proceedings to require specific performance of this CONTRACT, or by such <br />other proceedings in law or equity as may be deemed necessary by the CWCB to <br />ensure compliance with provisions of this CONTRACT and the laws and regulations <br />under Which this CONTRACT is executed. The CWCB's exercise of any or all of the <br />remedies described herein shall not relieve the BORROWER of any of its duties and <br />obligations under this CONTRACT. <br />15. Operation of PROJECT. The BORROWER shall, without expense or legal liability to the <br />CWCB, manage, operate, and maintain the PROJECT continuously in an efficient and <br />economical manner. <br />16. BORROWER's Liability Insurance. <br />a. Upon execution of this CONTRACT and continuing until complete repayment of the <br />loan is made to the CWCB, the BORROWER shall maintain commercial general <br />liability insurance, with a company that is satisfactory to the CWCB, with minimum <br />limits of $1,000,000 combined single limit for each occurrence and $2,000,000 <br />Loan Contract C150392 <br />Page 5 of 12 <br />