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BORROWER, or (3) at the CWCB's discretion, said interest shall be rolled into the TOTAL LOAN <br /> AMOUNT due. <br /> 6. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the PROJECT <br /> in accordance with the terms of this CONTRACT shall be remitted to the CWCB within 30 <br /> calendar days from notification from the CWCB of either (i) completion of the PROJECT or (2) <br /> determination by the CWCB that the PROJECT will not be completed. Any such loan funds so <br /> remitted to CWCB shall be applied to the principal payment of amounts due on the Loan. <br /> 7. 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 /> RESOLUTIONS are attached as APPENDICES 4a, Resolutions of the Shareholders and 4b, <br /> Resolutions of the Board of Directors and incorporated herein. <br /> 8. 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 elected or <br /> appointed and are authorized to execute the CONTRACT and to bind the BORROWER;and <br /> b. the resolutions of the BORROWER authorizing the execution and delivery of the CONTRACT <br /> were duly adopted by the BORROWER's board of directors and shareholders; and <br /> c. there are no provisions in the BORROWER's articles of incorporation or bylaws or any state <br /> 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 /> g. Pledge of Revenues. The Borrower irrevocably (but not exclusively) pledges to the CWCB, <br /> for the purpose of repaying the LOAN AMOUNT, the PLEDGED REVENUES, in such amount as is <br /> necessary to make each annual payment due under this LOAN CONTRACT. Such pledge of the <br /> PLEDGED REVENUES is on parity with the loans identified in SECTION 5 OF APPENDIX 1 (the <br /> "EXISTING PARITY LOANS") and any additional indebtedness that may be secured by the <br /> PLEDGED REVENUES in the future that is incurred in accordance with SECTION B.g.E. hereof, <br /> (the "ADDITIONAL PARITY INDEBTEDNESS," and together with the EXISTING PARITY LOANS, the <br /> "PARITY INDEBTEDNESS.") <br /> a. Segregation of Pledged Revenues. The PLEDGED REVENUES shall be accounted for and <br /> maintained in an account separate from other BORROWER revenues at all times. The <br /> PLEDGED REVENUES shall be used first to pay debt service on the LOAN AMOUNT and all other <br /> PARITY INDEBTEDNESS on an equal basis and thereafter may be used for any and all other <br /> expenses. <br /> b. Establish Security Interest. The BORROWER has duly executed a SECURITY AGREEMENT, <br /> attached hereto as APPENDIX 5 and incorporated herein, to provide a security interest to the <br /> CWCB in the PLEDGED REVENUES. The lien of this LOAN CONTRACT on the PLEDGED REVENUES <br /> Page 4 of 14 <br />