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£ 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 /> io. 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, as long as any of the principal, accrued interest, and late charges, if any, on this
<br /> loan remain unpaid, without the prior written concurrence of the CWCB. The provisions of
<br /> this Section io do not prohibit the Borrower from applying any PLEDGED REVENUES
<br /> remaining in each year after the payment of the annual amounts due on the loan to any
<br /> other legally permissible purpose, including, without limitation, paying for additional
<br /> capital improvements or repairs.
<br /> n. 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 interest
<br /> in and to the PLEDGED REVENUES.
<br /> 12. Warranties.
<br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by its
<br /> representations herein, the BORROWER shall be estopped from asserting for any reason
<br /> that it is not authorized or obligated to repay the loan to the CWCB as required by this
<br /> CONTRACT.
<br /> b. The BORROWER warrants that it has not employed or retained any company or person,
<br /> other than a bona fide employee worldng solely for the BORROWER, to solicit or secure this
<br /> 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 malting of
<br /> this CONTRACT.
<br /> c. The BORROWER warrants that the PLEDGED REVENUES and PLEDGED PROPERTY for this loan
<br /> are not encumbered by any other deeds of trust or liens of any party other than the
<br /> CWCB or in any other manner, except for the EXISTING PARiTy LOANS which sets forth the
<br /> 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 attached to
<br /> the PROJECT SUMMARY and incorporated herein.
<br /> 13. Remedies for Default. Upon default in the payments to be made by the BORROWER under
<br /> this CONTRACT, or default in the performance of any covenant or agreement contained herein,
<br /> the CWCB, at its option, may:
<br /> a. suspend this CONTRACT and withhold further loan disbursements pending corrective
<br /> action by the BORROWER, and if the BORROWER does not cure the default as provided for
<br /> below, permanently cease loan disbursements and deem the PROJECT substantially
<br /> complete;
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