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from tap and/or connection fees.
<br /> 3. The BORROWER acknowledges and understands that any request for approval
<br /> of the issuance of additional debt must be reviewed and approved by the CWCB
<br /> prior to the issuance of any additional debt.
<br /> f. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT, the
<br /> BORROWER shall submit to the CWCB an annual audit report.
<br /> g. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey,
<br /> assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED
<br /> REVENUES, 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.
<br /> 9. Pledge of 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 (LOAN SECURITY) 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 /> 10. 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
<br /> interest in and to the PLEDGED REVENUES and the PLEDGED PROPERTY.
<br /> 11.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.
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<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 s$cure
<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.
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<br /> c. The BORROWER warrants that the PLEDGED REVENUES and PLEDGED PROPERTY fo`-this
<br /> loan are not encumbered by any other deeds of trust or liens of any party otheri than
<br /> the CWCB or in any other manner, except for any existing lien(s) identified in APPENDIX
<br /> 1, PROJECT SUMMARY, SECTION 5, SCHEDULE OF EXISTING DEBT, which sets forth the
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