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io. Additional Debts. The BORROWER acknowledges and understands that any request for
<br /> approval of the issuance of additional debt must be reviewed and approved by the CWCB
<br /> prior to the issuance of any additional debt. At the time of the issuance of the additional
<br /> debt, the BORROWER must be in substantial compliance with all of the obligations of this
<br /> CONTRACT, including, but not limited to, being current on the annual payments due under
<br /> this CONTRACT and in the accumulation of all amounts then required to be accumulated in
<br /> the BORROWER's debt service reserve fund.
<br /> ii. Pledge of Pro e . 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 further
<br /> described in Section 6 (LOAN SECURITY) of Appendix i is authorized by the BORROWER'S
<br /> Authorizing Loan Resolution, and secured by the DEED OF TRUST(attached as Appendix 6).
<br /> a. 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
<br /> event of any such sale, transfer or encumbrance without the CWCB's written
<br /> concurrence, the CWCB may at any time thereafter declare all outstanding principal,
<br /> interest, and late charges, if any, on this loan immediately due and payable.
<br /> b. 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 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 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 working 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 making of
<br /> this CONTRACT.
<br /> 13. Operation of PROJECT. The BORROWER shall, without expense or legal liability to the CWCB,
<br /> manage, operate, and maintain the PROJECT continuously in an efficient and economical
<br /> manner.
<br /> 14. 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:
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