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10. Collateral during Loan Repayment. The BORROWER shall not sell, convey, assign,
<br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the COLLATERAL
<br /> so long as any of the principal, accrued interest, and late charges, if any, on this loan
<br /> remain unpaid, without the prior written concurrence of the CWCB. In the event of any
<br /> such sale, transfer or encumbrance without the CWCB's written concurrence, the
<br /> CWCB may at any time thereafter declare all outstanding principal, interest, and late
<br /> charges, if any, on this loan 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
<br /> NOTE, the CWCB agrees to release and terminate any and all of the CWCB's right,
<br /> title, and interest in and to the Collateral and the Pledged Revenues.
<br /> 12. Warranties.
<br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT
<br /> and by its representations herein, the BORROWER shall be estopped from
<br /> asserting for any reason that it is not authorized or obligated to repay the loan to
<br /> the CWCB as required by this CONTRACT.
<br /> b. The BORROWER warrants that it has not employed or retained any company or
<br /> person, other than a bona fide employee working solely for the BORROWER, to
<br /> solicit or secure this CONTRACT and has not paid or agreed to pay any person,
<br /> company, corporation, individual, or firm, other than a bona fide employee, any
<br /> fee, commission, percentage, gift, or other consideration contingent upon or
<br /> resulting from the award or the making of this CONTRACT.
<br /> c. The BORROWER warrants that the Pledged Revenues and Collateral for this loan
<br /> are not encumbered by any other deeds of trust or liens of any party other than
<br /> 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
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