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<br />,\ ,I <br /> <br />A. LOAN PROVISIONS <br /> <br />1. Promissory Note Provisions. The CWCB agrees to loan to the BORROWER an amount not <br />to exceed the LOAN AMOUNT and the BORROWER agrees to repay the loan in accordance with <br />the terms as set forth in the Promissory Note, attached hereto as Appendix 2 and <br />incorporated herein. <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 CWCB <br />shall calculate the amount of the interest that accrued prior to completion of the PROJECT <br />and the BORROWER shall repay that amount to the CWCB either within ten (10) days after <br />the date the CWCB determines that the PROJECT has been substantially completed, or, at <br />the eWCB's discretion, said interest shall be deducted from the finai disbursement of loan <br />funds that the CWCB 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 CWCB within <br />30 days of either (1) completion of the PROJECT or (2) upon the determination by the CWCB <br />that the PROJECT wiil 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 of <br />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 attorney's <br />opinion that <br /> <br />a. the person signing for the BORROWER was duly elected or appointed and has authority <br />to sign such documents on b'ehalf of the BORROWER and to bind the BORROWER; <br /> <br />b. the BORROWER'S board of directors and/or stockholders have validly adopted resolutions <br />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 />eWCB. <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 purpose <br />as authorized by the BORROWER'S resolution(s) and (2) all of the BORROWER'S rights to <br />receive said assessment revenues, hereinafter collectively referred to as the "Pledged <br />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, and <br />warrants that it shall not use the pledged revenues for any other purpose. <br /> <br />Page 2 of 10 <br /> <br />Loan Contract <br />