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

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.
10. 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 increase the original interest
rate by 0.5% or more. The parties shall amend this contract, including a revised
promissory note, to effect said change in interest rate.
11. Remedies For Default. Upon default in the payments to be made by the BORROWER
under this contract, or default in the performance of any covenant or 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 disburs mints and deem the PROJECT
substantially complete;
b. declare the entire principal amount, acc -dL ' • t; d late charges, if any, then
outstanding immediately due and payab
c. exercise its rights under any appe ..: t• th :7' a ,' clp ng, but not limited to,
the Promissory Note, Security Agre :n•,,,) a . ent securing collateral;
and/or ,
d. take any other appropriate action.
The CWCB shall provide written notice to th BORROWER of any such default and shall
give the BORROWER an opportunity to curewithin thirty (30) days of receipt of such
notice. All remedies described herein m y be simultaneously or selectively and
successively enforced. The CWCB may enf rce the provisions of this contract at its
option without regard to prior waivers of previous defaults by the BORROWER, through
judicial proceedings to require specific performance of this contract, or by such other
proceedings in law or equity as may be deemed necessary by the CWCB to ensure
compliance with provisions of this contract and the laws and regulations under which
this contract is executed. The CWCB's exercise of any or all of the remedies
described herein shall not relieve the BORROWER of any of its duties and obligations
under this contract.
11. BORROWER'S Indemnification Of The CWCB. The BORROWER agrees to indemnify and
hold the CWCB harmless from any liability incurred by the CWCB as a result of the
CWCB's interest in the PROJECT facilities and any other property identified in Section 6
(Collateral) of the Project Summary.
12. Operation of PROJECT. The BORROWER shall, without expense or legal liability to the
CWCB, manage, operate, and maintain the PROJECT continuously in an efficient and
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