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during the term of this contract to levy assessments sufficient to pay this loan as
<br /> required by the terms of this contract and the Promissory Note, to cover all
<br /> expenditures for operation and maintenance and emergency repair services, and to
<br /> maintain adequate debt service reserves. In the event the assessments levied by
<br /> the BORROWER become insufficient to assure such repayment to the CWCB, the
<br /> BORROWER shall immediately take all necessary action consistent with its statutory
<br /> authority, its articles of incorporation and bylaws including, but not limited to, levying
<br /> additional assessments to raise sufficient revenue to assure repayment of this loan.
<br /> d. Debt Service Reserve Account. To establish and maintain the debt service
<br /> reserve account, the BORROWER shall deposit an amount equal to one-tenth of an
<br /> annual payment into its debt service reserve fund on the due date of its first annual
<br /> loan payment and annually thereafter for the first ten years of repayment of this
<br /> loan. In the event that the BORROWER applies funds from this account to
<br /> repayment of the loan, the BORROWER shall replenish the account within ninety
<br /> (90) days of withdrawal of the funds.
<br /> 7. Collateral. The collateral for this loan is described in Section 6 (Collateral) of the
<br /> Project Summary, and secured by the deed of trust attached hereto as Appendix 5
<br /> and incorporated herein.
<br /> a. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge,
<br /> encumber, or otherwise dispose of the collateral for this loan, including the
<br /> Pledged Property, so long as any of the prin ,:,• crued interest, and late
<br /> charges, if any, on this loan remain un=_:' !`-:tho'' t rior written concurrence
<br /> of the CWCB. In the event of any su - er or encumbrance without
<br /> the CWCB's written concurrence, the = may at . c ti thereafter declare
<br /> all outstanding principal, interest, and la . r• -:. if on this loan
<br /> immediately due and payable.
<br /> 8. Release After Loan Is Repaid. Upon c. • re•ayment to the CWCB of the entire
<br /> principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br /> Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
<br /> and interest in and to the collateral and the property pledged to repay this loan.
<br /> 9. 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
<br /> reason that it is not authorized or obligated to repay the loan to the CWCB as
<br /> required by this contract.
<br /> b. The BORROWER warrants that it has not employed or retained any company or
<br /> person, other than a bona fide employee working solely for the BORROWER, to
<br /> solicit or secure this contract and has not paid or agreed to pay any person,
<br /> company, corporation, individual, or firm, other than a bona fide employee, any fee,
<br /> commission, percentage, gift, or other consideration contingent upon or resulting
<br /> from the award or the making of this contract.
<br /> c. The BORROWER warrants that the Pledged Property and collateral for this loan are
<br /> not encumbered by any other deeds of trust or liens of any party other than the
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