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including, but not limited to, levying additional assessments to raise sufficient
<br /> revenue to assure repayment of this loan.
<br /> d. Debt Service Reserve Account or Fund. To establish and maintain the debt
<br /> service reserve account, the BORROWER shall deposit an amount equal to one-
<br /> tenth of an annual payment into its debt service reserve fund on the due date of its
<br /> first annual loan payment and annually thereafter for the first ten years of
<br /> repayment of this loan. In the event that the BORROWER applies funds from this
<br /> account to repayment of the loan, the BORROWER shall replenish the account
<br /> within ninety (90) days of withdrawal of the funds. The debt service reserve
<br /> account or fund requirement is in effect until the loan is paid in full.
<br /> 9. Collateral. The BORROWER irrevocably pledges to the CWCB, for purposes of
<br /> repayment of this loan, the real property ("COLLATERAL") as further described in
<br /> Section 6 (COLLATERAL) of the PROJECT SUMMARY, authorized by the BORROWER'S
<br /> AUTHORIZING RESOLUTIONS and secured by 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
<br /> COLLATERAL SO long as any of the principal, accrued interest, and late charges, if
<br /> any, on this loan remain unpaid, without the prior written concurrence of the CWCB.
<br /> In the event of any such sale, transfer or encumbrance without the CWCB's written
<br /> concurrence, the CWCB may at any time thereafter declare all outstanding principal,
<br /> interest, and late charges, if any, on this loan immediately due 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,
<br /> title, 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
<br /> and by its representations herein, the BORROWER shall be estopped from
<br /> asserting for any reason that it is not authorized or obligated to repay the loan to
<br /> the CWCB as 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
<br /> fee, commission, percentage, gift, or other consideration contingent upon or
<br /> resulting from the award or the making of this CONTRACT.
<br /> C. The BORROWER warrants that the Pledged Property and Collateral for this loan are
<br /> 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 of
<br /> the lien created by this CONTRACT in relation to any existing lien(s). Documentation
<br /> Loan Contract C150398
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