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• 0 <br /> BORROWER; <br /> b. there are no provisions in the BORROWER'S articles of incorporation or bylaws or any <br /> state or local law that prevent this contract from binding the BORROWER; and <br /> c. the contract will be valid and binding against the BORROWER if entered into by the <br /> CWCB. <br /> 8. Pledge of Property. The BORROWER irrevocably pledges : for purposes of <br /> repayment of this loan the real property as describe , , hereinafter <br /> referred to as the "Pledged Property." <br /> a. Establish Security Interest. The BoRRoWlikr uted a Security <br /> Agreement, attached hereto as Appendix 3 and incor a d ei to provide a <br /> security interest to the CWCB in the Pledged Property. shall have <br /> priority over all other competing claims for said Pledged Property, e ept for the <br /> liens of the BORROWER'S existing loans as listed in Section 5 (Schedule of Existing <br /> Debt) of the Project Summary, which sets forth the position of the lien created by <br /> this contract in relation to any existing lien(s). <br /> b. 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 instrument(s) attached hereto as Appendix 4 <br /> and incorporated herein. <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 by <br /> its representations herein, the BORROWER shall be estopped from asserting for any <br /> reason that it is not authorized or obligated to repay the loan to the CWCB as <br /> Loan Contract C150220 <br /> Page 3 of 11 <br />