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9. Warranties. <br /> a. The BORROWER warrants that, by accepting the loan money under this contract and by its <br /> representations herein, the BORROWER shall be estopped from asserting for any reason <br /> that it is not authorized or obligated to repay the loan to the CWCB as required by this <br /> contract. <br /> b. The BORROWER warrants that it has not employed or retained any company or person, <br /> other than a bona fide employee working solely for the BORROWER, to solicit or secure this <br /> contract and has not paid or agreed to pay any person, company, corporation, individual, <br /> or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other <br /> consideration contingent upon or resulting from the award or the making of this contract. <br /> c. The BORROWER warrants that the collateral for this loan is not encumbered by any other <br /> deeds of trust or liens of any party other than the CWCB or in any other manner, except <br /> for any pre-existing lien(s) identified in Section 5 (Schedule of Existing Debt) of the <br /> Project Summary, which sets forth the position of the lien created by this contract in <br /> relation to that pre-existing lien. The subordination of the existing debt is attached as <br /> Appendix 5 and incorporated herein. <br /> 10. Change of Ownership of Water Shares During Term of Contract. If the interest rate for <br /> this loan is based on the CWCB's agricultural or blended agricultural and municipal rates, <br /> the BORROWER agrees to notify the STATE of any change of the ownership of its water rights <br /> from irrigation to municipal or commercial use. The interest rate shall be revised when said <br /> rate would increase the original interest rate by 0.5% or more. The parties shall amend this <br /> contract, including a revised promissory note, to effect said change in interest rate. <br /> 11. Remedies For Default. Upon default in the payments to be made by the BORROWER under <br /> this contract, or if the BORROWER fails to comply with any provision of this contract, the CWCB, <br /> at its option, may: <br /> a. suspend this contract and withhold further loan disbursements, pending corrective action <br /> by the BORROWER, and if the BORROWER does not cure th9,.d fault as provided for below, <br /> permanently cease loan disbursements and deem the PFr=c7 su6st ;ntlly complete; <br /> E .,;� ^ <br /> b. declare the entire principal amount, accrued interest, and late charges, if any, then <br /> outstanding immediately due and payable; <br /> t ;F i e <br /> c. exercise its rights under any appendices to this ontrai , in it bu not ' ed to, the <br /> Promissory Note, Security Agreement, Assignment of Certificate of Deposit, and/or Deed <br /> of Trust; 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 give <br /> the BORROWER an opportunity to cure within thirty (30) days of receipt of such notice. All <br /> remedies described herein may be simultaneously or selectively and successively enforced. <br /> The CWCB may enforce the provisions of this contract at its option without regard to prior <br /> waivers of previous defaults by the BORROWER, through judicial proceedings to require <br /> specific performance of this contract, or by such other proceedings in law or equity as may <br /> be deemed necessary by the CWCB to ensure compliance with provisions of this contract <br /> Page 3 of 8 Loan Contract <br />