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<br />c. <br /> <br />','. <br /> <br />. <br /> <br />. <br /> <br />rates, the SORROWER agrees to notify the STATE of any change of the use of the water <br />rights represented by its shares from irrigation to municipal or commercial use. The <br />interest rate shall be revised when the blend of the agricultural rate and the <br />municipal/commercial rate increases the original interest rate by 0.5% or more. The <br />parties shall amend this contract, including a revised promissory note, to effect said <br />change in interest rate. <br /> <br />11. Remedies For Default. Upon default in the payments to be made by the BORROWER <br />under this contract, or if the SORROWER fails to comply with any provision of this contract, <br />the CWCB, at its option, may: <br /> <br />a. suspend this contract and withhold further loan disbursements pending corrective <br />action by the BORROWER, and if the BORROWER does not cure the default as provided <br />for below, permanently cease loan disbursements and deem the PROJECT <br />substantially complete; <br /> <br />b. declare the entire principal amount, accrued interest, and late charges, if any, then <br />outstanding immediately due and payable; <br /> <br />c. exercise its rights under any appendices to this contract, including, but not limited to, <br />the Promissory Note, Security Agreement, and/or Deed of Trust; and/or <br /> <br />d. take any other appropriate action. <br /> <br />The CWCS shall provide written notice to the BORROWER of any such default and shall <br />give the BORROWEOR an opportunity to cure within thirty (30) days of receipt of such <br />notice. NI remedies described herein may be Simultaneously or selectively and <br />successively enforced. The CWCS may enforce the provisions of this contract at its <br />option without regard to prior waivers of previous defaults by the BORROWER, through <br />judicial proceedings to require specific performance of this contract, or by such other <br />proceedings in law or equity as may be deemed necessary by the CWCS to ensure <br />compliance with provisions of this contract and the laws and regulations under which this <br />contract is executed. The CWCB's exercise of any or all of the remedies described <br />herein shall not relieve the BORROWER of any of its duties and obligations under this <br />contract. <br /> <br />12. BORROWER'S Indemnification Of The CWCS. The BORROWER agrees to indemnify and <br />hold the CWCB harmless from any liability incurred by the CWCB as a result of the <br />CWCS's interest in the PROJECT facilities and any other property identified in Section 3 <br />(Collateral) of the Project Summary. <br /> <br />13.0peration of PROJECT. The BORROWER shall, without expense or legal liability to the <br />ewcs, manage, operate, and maintain the PROJECT continuously in an efficient and <br />economical manner. <br /> <br />14. BORROWER'S Liability Insurance. Upon execution of this contract and continuing until <br />complete repayment of the loan is made to the CWCS, the SORROWER shall maintain <br />commercial general liability insurance with a company that is satisfactory to the CWCB <br />covering the management, operation, and maintenance of the PROJECT with minimum <br />limits of $1,000,000 combined single limit for each occurrence and $2,000,000 general <br />aggregate, including products/completed operations and. personal injury. Said general. <br />liability insurance shall name the CWCS as additional insured. The BORROWER shall <br /> <br />Tunnel Water Company <br /> <br />Page 4 of 11 <br /> <br />Loan Contract <br />