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BORROWER'S existing loans as listed in Section 5 (Schedule of Existing Debt) of the
<br /> PROJECT SUMMARY, which sets forth the position of the lien created by this CONTRACT in
<br /> relation to any existing lien(s).
<br /> c. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation and
<br /> bylaws, the BORROWER shall take all necessary actions consistent therewith during the
<br /> term of this CONTRACT to levy assessments sufficient to pay this loan as required by the
<br /> terms of this CONTRACT and the PROMISSORY NOTE, to cover all expenditures for
<br /> operation and maintenance and emergency repair services, and to maintain adequate
<br /> debt service reserves. In the event the assessments levied by the BORROWER become
<br /> insufficient to assure such repayment to the CWCB, the BORROWER shall immediately
<br /> take all necessary action consistent with its statutory authority, its articles of
<br /> incorporation and bylaws including, but not limited to, levying additional assessments to
<br /> raise sufficient revenue to assure repayment of this loan.
<br /> d. Assessment Covenant. Pursuant to its statutory authority and as permitted by law,
<br /> the BORROWER shall take all necessary actions consistent therewith during the term of
<br /> this CONTRACT to establish, levy and collect assessments, charges and fees as
<br /> described in APPENDIX 4, in amounts sufficient to pay this loan as required by the terms
<br /> of this CONTRACT and the PROMISSORY NOTE, to cover all expenditures for operation
<br /> and maintenance and emergency repair services, and to maintain adequate debt
<br /> service reserves, of increases in the BORROWER'S assessment schedule.
<br /> e. Debt Service Reserve Account or Fund. 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 loan
<br /> payment and annually thereafter for the first ten years of repayment of this loan. In the
<br /> event that the BORROWER applies funds from this account to repayment of the loan,
<br /> the BORROWER shall replenish the account within ninety (90) days of withdrawal of the
<br /> funds. The debt service reserve account or fund requirement will remain in effect until
<br /> the loan is paid in full.
<br /> 9. Collateral The BORROWER irrevocably pledges to the CWCB, for purposes of repayment of
<br /> this loan, the real property ("COLLATERAL") as further described in Section 6 (COLLATERAL) of
<br /> the PROJECT SUMMARY, authorized by the BORROWER'S AUTHORIZING RESOLUTIONS and
<br /> secured by the DEED OF TRUST(APPENDIX 6).
<br /> 10. Collateral during Loan Repayment. The BORROWER shall not sell, convey, assign, grant,
<br /> transfer, mortgage, pledge, encumber, or otherwise dispose of the COLLATERAL so long as
<br /> any of the principal, accrued interest, and late charges, if any, on this loan remain unpaid,
<br /> without the prior written concurrence of the CWCB. In the event of any such sale, transfer or
<br /> encumbrance without the CWCB's written concurrence, the CWCB may at any time
<br /> thereafter declare all outstanding principal, interest, and late charges, if any, on this loan
<br /> 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 NOTE,
<br /> the CWCB agrees to release and terminate any and all of the CWCB's right, title, and
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