|
and bylaws, the BORROWER shall take all necessary actions consistent therewith
<br /> during the term of this CONTRACT to levy assessments sufficient to pay this loan as
<br /> required by the terms of this CONTRACT and the PROMISSORY NOTE, to cover all
<br /> expenditures for operation and maintenance and emergency repair services, and to
<br /> maintain adequate debt service reserves. In the event the assessments levied by
<br /> the BORROWER become insufficient to assure such repayment to the CWCB, the
<br /> BORROWER shall immediately take all necessary action consistent with its statutory
<br /> authority, its articles of incorporation and bylaws including, but not limited to, levying
<br /> additional assessments to raise sufficient revenue to assure repayment of this loan.
<br /> d. Debt Service Reserve Account. To establish and maintain the debt service
<br /> reserve account, the BORROWER shall deposit an amount equal to one-tenth of an
<br /> 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) including the SECURITY
<br /> AGREEMENT(APPENDIX 4) and the DEED OF TRUST(APPENDIX 5).
<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 /> Loan Contract C150360
<br /> Page 4 of 12
<br />
|