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PROJECT'S substantial completion (as determined by the CWCB) and notify BORROWER of <br /> such amount. The BORROWER shall repay that amount to the CWCB either within ten (10) <br /> days from the date of notification from the CWCB, or, at the CWCB's discretion, said <br /> interest shall be deducted from the final disbursement of loan funds that the CWCB makes <br /> to the BORROWER. <br /> 5. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the <br /> PROJECT in accordance with the terms of this CONTRACT shall be remitted to the CWCB <br /> within 30 calendar days from notification from the CWCB of either (1) completion of the <br /> PROJECT or (2) determination by the CWCB that the PROJECT will not be completed. Any <br /> such loan funds so remitted to CWCB shall be applied to the principal payment of amounts <br /> due on the Loan. <br /> 6. BoRROwER's Authority to Contract. The BORROWER warrants that it has full power and <br /> authority to enter into this CONTRACT. The execution and delivery of this CONTRACT and the <br /> performance and observation of its terms, conditions and obligations have been duly <br /> authorized by all necessary actions of the BORROWER The BORROWER'S AUTHORIZING <br /> RESOLUTION(s) are attached as APPENDIX 4a, Resolutions of the Shareholders (required) <br /> and Appendix 4b, Resolutions of the Board of Directors (required) and incorporated herein. <br /> 7. Attorney's Opinion Letter. Prior to the execution of this CONTRACT by the CWCB, the <br /> BORROWER shall submit to the CWCB a letter from its attorney stating that it is the attorney's <br /> opinion that: <br /> a. the CONTRACT has been duly executed by officers of the BORROWER who are duly <br /> elected or appointed and are authorized to execute the CONTRACT and to bind the <br /> BORROWER; and <br /> b. the resolutions of the BORROWER authorizing the execution and delivery of the <br /> CONTRACT were duly adopted by the BORROWER'S board of directors and/or <br /> shareholders; and <br /> c. 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 /> d. 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 to the CWCB for purposes of <br /> repayment of this loan: (1) revenues from assessments levied for that purpose as <br /> authorized by the BORROWER'S resolution(s) and (2) all of the BORROWER'S rights to receive <br /> said assessment revenues, hereinafter collectively referred to as the"PLEDGED PROPERTY". <br /> a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the <br /> pledged assessment revenues in an account separate from other BORROWER revenues <br /> and warrants that these revenues will not be used for any other purpose. <br /> b. Establish Security InteresT. THE BORROWER has duly executed a SECURITY <br /> AGREEMENT, attached hereto as APPENDIX 5 and incorporated herein, to provide a <br /> security interest to the CWCB in the PLEDGED PROPERTY. The CWCB shall have priority <br /> over all other competing claims for said PLEDGED PROPERTY, except for the liens of the <br /> Page 3 of 12 <br />