C150118 Paid in Full Contract

• Contract/PO #: C150118
• Contractor Name: The Kern Resevoir and Ditch company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

10. Warranties.
a. The BORROWER warrants that, by acceptance of the loan under this contract and by
its representations herein, the BORROWER shall be estopped from asserting for any
reason that it is not authorized or obligated to repay the loan to the CWCB as
required by this contract.
b. The BORROWER warrants that it has not employed or retained any company or
person, other than a bona fide employee working solely for the BORROWER, to
solicit or secure this contract and has not paid or agreed to pay any person,
company, corporation, individual, or firm, other than a bona fide employee, any fee,
commission, percentage, gift, or other consideration contingent upon or resulting
from the award or the making of this contract.
c. The BORROWER warrants that the Pledged Property and collateral for this loan are
not encumbered by any other deeds of trust or liens of any party other than the
CWCB or in any other manner, except for any existing lien(s) identified in Section 5
(Schedule of Existing Debt) of the Project Summary, which sets forth the position
of the lien created by this contract in relation to any existing lien(s). Documentation
establishing the relative priorities of said liens, if necessary, is attached to the
Project Summary and incorporated herein.
11. Change of Ownership of Water Shares During Term of Contract. If the interest
rate for this loan is based on the CWCB's agricultural or blended agricultural and
municipal and/or commercial and/or industrial rates, the BORROWER agrees to notify
the CWCB of any change of the ownership of the water rights represented by its
shares from irrigation to municipal or commercial or industrial use. The interest rate
shall be revised when said change in ownership,would increas, the original interest
rate by 0.5% or more. The parties shall amo, d t is,cQntr 'y including a revised
promissory note, to effect said change in interest rate.
12. Remedies For Default. Upon default in the paytnelits <5e n'f de'C y the BORROWER
under this contract, or default in the performance, 1 any, covenantor agreement
contained herein, the CWCB, at its option, may:
a. suspend this contract and withhold further loan disbursements pending corrective
action by the BORROWER, and if the BORROWER does not cure the default as
provided for below, permanently cease loan disbursements and deem the PROJECT
substantially complete;
b. declare the entire principal amount, accrued interest, and late charges, if any, then
outstanding immediately due and payable;
c. exercise its rights under any appendices to this contract, including, but not limited to,
the Promissory Note, Security Agreement, and/or any instrument securing collateral;
and/or
d. take any other appropriate action.
The CWCB shall provide written notice to the BORROWER of any such default and shall
give the BORROWER an opportunity to cure within thirty (30) days of receipt of such
notice. All remedies described herein may be simultaneously or selectively and
successively enforced. The CWCB may enforce the provisions of this contract at its
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