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from the award or the making of this CONTRACT. <br /> c. The BORROWER warrants that the PLEDGED PROPERTY and COLLATERAL for this <br /> loan are not encumbered by any other deeds of trust or liens of any party other <br /> than the CWCB or in any other manner, except for any existing lien(s) identified in <br /> Section 5 (Schedule of Existing Debt) of the PROJECT SUMMARY, which sets forth <br /> the position of the lien created by this CONTRACT in relation to any existing lien(s). <br /> Documentation establishing the relative priorities of said liens, if necessary, is <br /> attached to the PROJECT SUMMARY and incorporated herein. <br /> 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 corrective <br /> action by the BORROWER, and if the BORROWER does not cure the default as <br /> provided for below, permanently cease loan disbursements and deem the PROJECT <br /> 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 limited <br /> to, the PROMISSORY NOTE, SECURITY AGREEMENT, DEEDS OF TRUST and/or any <br /> 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 shall <br /> give the BORROWER an opportunity to cure within thirty (30) days of receipt of such <br /> 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 other <br /> proceedings in law or equity as may be deemed necessary by the CWCB to ensure <br /> compliance with provisions of this CONTRACT and the laws and regulations under which <br /> this CONTRACT is executed. The CWCB's exercise of any or all of the remedies <br /> described herein shall not relieve the BORROWER of any of its duties and obligations <br /> under this CONTRACT. <br /> Page 5 of 12 <br />