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<br />the LOAN AMOUNT. If the amount of loan funds disbursed by the CWCS to the BORROWER <br />differs from the LOAN AMOUNT, the parties agree to amend this contract to revise the LOAN <br />AMOUNT. <br /> <br />2. Interest Prior to Project Completion. As the loan funds are disbursed by the CWCB to <br />the BORROWER, interest shall accrue at the rate set by the CWCB for this loan. The <br />CWCS shall calculate the amount of the interest that accrued prior to completion of the <br />PROJECT and the BORROWER shall repay that amount to the CWCB either within ten (10) <br />days after the date the CWCB determines that the PROJECT has been substantially <br />completed, or, at the CWCB's discretion, said interest shall be deducted from the final <br />disbursement of loan funds that the CWCS makes to the BORROWER. <br /> <br />3. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the <br />PROJECT in accordance with the terms of this Contract shall be remitted to the CWCS <br />within 30 days of either (1) completion of the PROJECT or (2) upon the determination by <br />the CWCB that the PROJECT will not be completed. <br /> <br />4, BORROWER'S Authority To Contract. The BORROWER'S board of directors (and <br />stockholders, if required) have adopted resolutions, attached as Appendix 3 and <br />incorporated herein, authorizing the BORROWER to perform in accordance with the terms <br />of this contract. <br /> <br />5, Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the <br />BORROWER shall submit to the CWCB a letter from its attorney stating that it is the <br />attorney's opinion that <br />a, the person signing for the BORROWER was duly elected or appointed and has authority <br />to sign such documents on behalf of the BORROWER and to bind the BORROWER; <br /> <br />b. the BORROWER'S board of directors and/or stockholders have validly adopted <br />resolutions approving this contract; <br /> <br />c. there are no provisions in the BORROWER'S articles of incorporation or bylaws or any <br />state or local law that prevent this contract from binding the BORROWER; and <br /> <br />d. the contract will be valid and binding against the BORROWER if entered into by the <br />CWCB, <br /> <br />6. Pledge Of Property. The BORROWER hereby irrevocably pledges to the CWCB for <br />purposes of repayment of this loan (1) revenues from assessments levied for that <br />purpose as authorized by the BORROWER'S resolution(s) and (2) all of the BORROWER'S <br />rights to receive said assessment revenues, hereinafter collectively referred to as the <br />"Pledged Property." <br /> <br />a. Segregation of Pledged Revenues. The BORROWER hereby agrees to set aside and <br />keep the pledged revenues in an account separate from other BORROWER revenues, <br />and warrants that it shall not use the pledged revenues for any other purpose. <br /> <br />b. Establish Security Interest. The BORROWER agrees that, to provide a security <br />interest to the CWCB in the Pledged Property so that the CWCB shall have priority <br />over all other competing claims for said property, it shall execute a Security <br />Agreement, attached hereto as Appendix 4, and incorporated herein, The CWCB <br />shall perfect its security interest in the BORROWER'S right to receive assessment <br /> <br /> <br />Page 2 019 <br /> <br />Loan Contract <br />