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G. Pledged Revenues During Loan Repayment. The Borrower shall not sell, convey, assign,
<br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Revenues,
<br /> so long as any of the principal, accrued interest, and late charges, if any, on this loan remain
<br /> unpaid, without the prior written concurrence of the CWCB. The provisions of this Section
<br /> 14.G do not prohibit the Borrower from applying any Pledged Revenues remaining in each
<br /> year after the payment of the annual amounts due on the loan to any other legally permissible
<br /> purpose,including,without limitation,paying for additional capital improvements or repairs.
<br /> 15. RELEASE AFTER LOAN IS REPAID
<br /> Upon complete repayment to the CWCB of the entire principal, all accrued interest, and late
<br /> charges, if any, as specified in the Promissory Note, the CWCB agrees to release and terminate
<br /> any and all of the CWCB's right, title, and interest in and to the Pledged Revenues.
<br /> 16. WARRANTIES
<br /> A. The Borrower warrants that, by acceptance of the loan under this Contract and by its
<br /> representations herein,the Borrower shall be estopped from asserting for any reason that it is
<br /> not authorized or obligated to repay the loan to the CWCB as required by this Contract.
<br /> B. The Borrower warrants that it has not employed or retained any company or person, other
<br /> than a bona fide employee working solely for the Borrower, to solicit or secure this Contract
<br /> and has not paid or agreed to pay any person,company,corporation,individual,or firm,other
<br /> than a bona fide employee, any fee, commission, percentage, gift, or other consideration
<br /> contingent upon or resulting from the award or the making of this Contract.
<br /> C. The Borrower warrants that the Pledged Revenues for this loan are not encumbered by any
<br /> other deeds of trust or liens of any party other than the CWCB or in any other manner,except
<br /> for the Existing Parity Loans which sets forth the position of the lien created by this Contract
<br /> in relation to any existing lien(s). Documentation establishing the relative priorities of said
<br /> liens, if necessary, is attached to the Project Summary and incorporated herein.
<br /> 17. CHANGE OF OWNERSHIP OF WATER SHARES DURING TERM OF CONTRACT
<br /> If the interest rate for this loan is based on the CWCB's agricultural or blended agricultural and
<br /> municipal and/or commercial and/or industrial rates, the Borrower agrees to notify the CWCB of
<br /> any change of the ownership of the water rights represented by its shares from irrigation to
<br /> municipal or commercial or industrial use. The interest rate shall be revised when said change in
<br /> ownership 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 /> 18. OPERATION OF PROJECT
<br /> The Borrower shall,without expense or legal liability to the CWCB,manage,operate,and maintain
<br /> the Project continuously in an efficient and economical manner.
<br /> 19. DISPUTE RESOLUTION
<br /> A. Initial Resolution
<br /> Except as herein specifically provided otherwise,disputes concerning the performance of this
<br /> Contract which cannot be resolved by the designated Contract representatives shall be
<br /> referred in writing to a senior departmental management staff member designated by the State
<br /> and a senior manager designated by Borrower for resolution.
<br /> Page 8 of 15
<br /> Contract Number:CT2019-648
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