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iii. The Borrower acknowledges and understands that any request for approval of the
<br /> issuance of additional debt must be reviewed and approved by the CWCB prior to the
<br /> issuance of any additional debt.
<br /> F. 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.
<br /> 15. PLEDGE OF PROPERTY
<br /> The Borrower irrevocably pledges to the CWCB, for purposes of repayment of this loan, an
<br /> interest in the Pledged Property. The Pledged Property as further described in Section 6 (Loan
<br /> Security) of Appendix 1 is authorized by the Borrower's Authorizing Resolution, and secured by
<br /> the Deed of Trust(attached as Appendix 6).
<br /> A. Pledged Property during Loan Repayment. The Borrower shall not sell, convey, assign,
<br /> grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Pledged Property
<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. In the event of any such sale,
<br /> transfer or encumbrance without the CWCB's written concurrence, the CWCB may at any
<br /> time thereafter declare all outstanding principal, interest, and late charges, if any, on this
<br /> loan immediately due and payable.
<br /> 16. 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 and the
<br /> Pledged Property.
<br /> 17. 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
<br /> is 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
<br /> Contract and has not paid or agreed to pay any person, company, corporation, individual, or
<br /> 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 Pledged Revenues and Pledged Property for this loan are
<br /> not encumbered by any other deeds of trust or liens of any party other than the CWCB or in
<br /> any other manner, except for the Existing Parity Loans which sets forth the position of the
<br /> lien created by this Contract in relation to any existing lien(s). Documentation establishing
<br /> the relative priorities of said liens, if necessary, is attached to the Project Summary and
<br /> incorporated herein.
<br /> 18. 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
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<br /> Contract Number:CT2019-2848
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