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h. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT,
<br /> the BORROWER shall submit to the CWCB an annual audit report.
<br /> i. Pledged Revenues During Loan Repayment. The BORROWER shall not sell,
<br /> convey, assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose
<br /> of the PLEDGED REVENUES, so long as any of the principal, accrued interest, and
<br /> late charges, if any, on this loan remain unpaid, without the prior written
<br /> concurrence of the CWCB.
<br /> 9. Pledged Property. The BORROWER irrevocably pledges to the CWCB, for purposes of
<br /> repayment of this loan, an interest in the PLEDGED PROPERTY. The PLEDGED PROPERTY as
<br /> further described in Section 6 (COLLATERAL) of the PROJECT SUMMARY is authorized by the
<br /> BORROWER'S AUTHORIZING RESOLUTION, and secured by the DEED OF TRUST(APPENDIX 6).
<br /> 10.Pledged Property during Loan Repayment. The BORROWER shall not sell, convey,
<br /> assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED
<br /> PROPERTY so long as any of the principal, accrued interest, and late charges, if any, on
<br /> this loan remain unpaid, without the prior written concurrence of the CWCB. In the event
<br /> of any 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, title,
<br /> and interest in and to the PLEDGED REVENUES and PLEDGED PROPERTY.
<br /> 12.Warranties.
<br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by
<br /> its representations herein, the BORROWER shall be estopped from asserting for any
<br /> reason that it is not authorized or obligated to repay the loan to the CWCB as required
<br /> by this CONTRACT.
<br /> b. The BORROWER warrants that it has not employed or retained any company or person,
<br /> other than a bona fide employee working solely for the BORROWER, to solicit or secure
<br /> this CONTRACT and has not paid or agreed to pay any person, company, corporation,
<br /> individual, or firm, other than a bona fide employee, any fee, commission, percentage,
<br /> gift, or other consideration contingent upon or resulting from the award or the making of
<br /> this CONTRACT.
<br /> c. The BORROWER warrants that the Pledged Revenues and Collateral for this loan are
<br /> not encumbered by any other deeds of trust or liens of any party other than the CWCB
<br /> or in any other manner, except for any existing lien(s) identified in Section 5 (Schedule
<br /> of Existing Debt) of the PROJECT SUMMARY, which sets forth the position of the lien
<br /> created by this CONTRACT in relation to any existing lien(s). Documentation establishing
<br /> the relative priorities of said liens, if necessary, is attached to the PROJECT SUMMARY
<br /> and incorporated herein.
<br /> 13. Change of Ownership of Water Shares during Term of Contract. If the interest rate
<br /> for this loan is based on the CWCB's agricultural or blended agricultural and municipal
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