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and be incorporated into this CONTRACT for the total duration of this <br /> CONTRACT. <br /> 4. Interest Prior to PROJECT Completion. As the loan funds are disbursed by the <br /> CWCB to the BORROWER, interest shall accrue, on the disbursed funds, at the rate set <br /> by the CWCB for this loan. The CWCB shall calculate the amount of the interest that <br /> accrued prior to PROJECT'S substantial completion (as determined by the CWCB) and <br /> notify BORROWER of such amount. The BORROWER shall repay that amount to the <br /> CWCB either within ten (10) days from the date of notification from the CWCB, or, at <br /> the CWCB's discretion, said interest shall be deducted from the final disbursement of <br /> loan funds that the CWCB makes 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 <br /> CWCB within 30 calendar days from notification from the CWCB of either (1) <br /> completion of the PROJECT or(2) determination by the CWCB that the PROJECT will not <br /> be completed. Any such loan funds so remitted to CWCB shall be applied to the <br /> principal payment of amounts due on the Loan. <br /> 6. BORROWER'S Authority to Contract. The BORROWER warrants that it has full power <br /> and authority to enter into this CONTRACT. The execution and delivery of this <br /> CONTRACT and the performance and observation of its terms, conditions and <br /> obligations have been duly authorized by all necessary actions of the BORROWER The <br /> BORROWER'S AUTHORIZING RESOLUTION(S) are attached as APPENDIX 4a, Resolutions <br /> of the Shareholders and Appendix 4b, Resolutions of the Board of Directors and <br /> incorporated herein. <br /> 7. Attorney's Opinion Letter. Prior to the execution of this CONTRACT by the CWCB, <br /> the BORROWER shall submit to the CWCB a letter from its attorney stating that it is the <br /> attorney's 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 <br /> any 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 <br /> the CWCB. <br /> 8. Pledge of Revenues. The BORROWER irrevocably pledges to the CWCB for purposes <br /> of 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 <br /> receive said assessment revenues, hereinafter collectively referred to as the "PLEDGED <br /> REVENUES". <br /> Page 3 of 12 <br />