C150112 Paid in Full Documents

• Contract/PO #: C150112
• Contractor Name: The Kern Resevoir and Ditch company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

from the CWCB, or, at the CWCB's discretion, said interest shall be deducted from the
final disbursement of loan funds that the CWCB makes to the BORROWER.
3. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the
PROJECT in accordance with the terms of this contract shall be remitted to the CWCB
within 30 calendar days from notification from the CWCB of either (1) completion of the
PROJECT or (2) upon the determination by the CWCB that the PROJECT will not be
completed.
4. BORROWER'S Authority To Contract. The BORROWER warrants that it has full power
and authority to enter into this contract. The execution and delivery of this contract and
the performance and observation of its terms, conditions and obligations have been
duly authorized by all necessary actions of the BORROWER. The BORROWER'S
authorizing resolution(s) are attached as Appendix 3 and incorporated herein.
5. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the
BORROWER shall submit to the CWCB a letter from its attorney stating that it is the
attorney's opinion that
a. the contract has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;
b. the resolutions of the BORROWER authorizing the execution and delivery of the
contract were duly adopted by the Bo--. ER'S board of directors and/or
stockholders
c. there are no provisions in the Bo•., : es of i orporation or bylaws or any
state or local law that prevent this. . act from . - in he,BORROWER; and
d. the contract will be valid and bindi.. -0 j' th ; •-.-• ER if entered into by the
CWCB.
6. Pledge Of Property. The BORRO --..rrevocably pledges to the CWCB for purposes of
repayment of this loan: (1) revenues from assessments levied for that purpose as
authorized by the BORROWER'S resolution(s) and (2) all of the BORROWER'S rights to
receive said assessment revenues, hereinafter collectively referred to as the "Pledged
Property."
a. Segregation of Pledged Revenues. The BORROWER shall set aside and keep the
pledged revenues in an account separate from other BORROWER revenues, and
warrants that these revenues will not be used for any other purpose.
b. Establish Security Interest. The BORROWER has duly executed a Security
Agreement, attached hereto as Appendix 4 and incorporated herein, to provide a
security interest to the CWCB in the Pledged Property. The CWCB shall have
priority over all other competing claims for said Pledged Property, except for the
liens of the BORROWER'S existing loans as listed 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).
c. Revenue Assessments. Pursuant to its statutory authority, articles of incorporation
and bylaws, the BORROWER shall take all necessary actions consistent therewith
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