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c. The BORROWER warrants that the PLEDGED PROPERTY and COLLATERAL for this <br />loan are not encumbered by any other deeds of trust or liens of any party other <br />than the CWCB or in any other manner, except for any existing lien(s) identified in <br />Section 5 (Schedule of Existing Debt) of the PROJECT SUMMARY, which sets forth <br />the 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 <br />attached to the PROJECT SUMMARY and incorporated herein. <br />13. Change of Ownership of Water Shares during Term of Contract. If the interest <br />rate for this loan is based on the CWCB's agricultural or blended agricultural and <br />municipal and/or commercial and/or industrial rates, the BORROWER agrees to notify <br />the CWCB of any change of the ownership of the water rights represented by its <br />shares from irrigation to municipal or commercial or industrial use. The interest rate <br />shall be revised when said change in ownership would increase the original interest <br />rate by 0.5% or more. The parties shall amend this CONTRACT, including a revised <br />PROMISSORY NOTE, to effect said change in interest rate. <br />14. Remedies for Default. Upon default in the payments to be made by the BORROWER <br />under this CONTRACT, or default in the performance of any covenant or agreement <br />contained herein, 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 <br />provided for below, permanently cease loan disbursements and deem the PROJECT <br />substantially complete; <br />b. declare the entire principal amount, accrued interest, and late charges, if any, then <br />outstanding immediately due and payable; <br />c. exercise its rights under any appendices to this CONTRACT, including, but not limited <br />to, the PROMISSORY NOTE, SECURITY AGREEMENT, DEED OF TRUST and/or any <br />instrument securing COLLATERAL; and/or <br />d. take any other appropriate action. <br />The CWCB shall provide written notice to the BORROWER of any such default and shall <br />give the BORROWER an opportunity to cure within thirty (30) days of receipt of such <br />notice. All remedies described herein may be simultaneously or selectively and <br />successively enforced. The CWCB may enforce the provisions of this CONTRACT at its <br />option without regard to prior waivers of previous defaults by the BORROWER, through <br />judicial proceedings to require specific performance of this CONTRACT, or by such other <br />proceedings in law or equity as may be deemed necessary by the CWCB to ensure <br />compliance with provisions of this CONTRACT and the laws and regulations under which <br />this CONTRACT is executed. The CWCB's exercise of any or all of the remedies <br />described herein shall not relieve the BORROWER of any of its duties and obligations <br />under this CONTRACT. <br />Loan Contract C150360 <br />Page 5 of 12 <br />