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<br />I. <br /> <br />. <br /> <br />. <br /> <br />and evidencing this loan in an amount up to $450,000 at an interest rate of 4% per annum for <br />a term of 30 years is attached as Appendix 2 and incorporated herein. <br /> <br />a. Interest During Construction, As the loan funds are disbursed by the CWCB to the <br />BORROWER during construction, interest shall accrue at the rate of 4%. The eWCB shall <br />calculate the amount of the interest accrued during construction and the BORROWER shall <br />repay that amount to the CWCB either within ten (10)' days after the date the CWCB <br />determines that the PROJECT has been substantially completed, or, at the CWCB's <br />discretion, said interest shall be deducted from the final disbursement of loan funds that <br />the CWCB makes to the BORROWER. <br /> <br />b. Final loan amount. In the event that the final loan amount is at least 90% of the <br />AUTHORIZED LOAN AMOUNT, the CWCB shall apply the remaining loan funds to <br />prepayment of the loan, which will result in the annual loan payment remaining the <br />same, and the time for repayment of the loan will be reduced. If the final loan amount is <br />less than 90% of the AUTHORIZED LOAN AMOUNT, the CWCB may apply those funds to <br />prepayment of the loan with the BORROWER'S consent, or the CWCB and the BORROWER <br />shall execute an amendment that will establish the final loan amount and amend or <br />replace the loan documents that reflect the final loan amount, including the Promissory <br />Note, Security Agreement, Deed of Trust, and Assignment of Certificate of Deposit. <br /> <br />10, Warranties, <br /> <br />a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of <br />this contract and by the BORROWER'S representation herein, the BORROWER shall be <br />estopped from asserting for any reason that it is not authorized or obiigated to repay the <br />loan money to the eWCB as required by this contract. <br /> <br />b. The BORROWER warrants that it has full power and authority to enter into this contract. <br />The execution and delivery of this contract and the performance and observation of its <br />terms, conditions and obligations have been duly authorized by all necessary actions of <br />the BORROWER. <br /> <br />c. The BORROWER warrants that it has not employed or retained any company or person, <br />~- ~ - - -- ,- -- - oHler than a60na tlaeempToyee worKing s61e1yrorffieS-ORROWER, !Osolicit-orsecure lhls-- , <br />contract and has not paid or agreed to pay any person, company, corporation, individual, <br />or 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 /> <br />d. The BORROWER warrants that the property identified in the Collateral Provisions of this <br />contract is not encumbered by any other deeds of trust to or liens of any party other than <br />the CWCB or in any other manner. <br /> <br />12. Collateral. Part of the security provided for this loan, as evidenced by the executed <br />Assignment of Certificate of Deposit attached as Appendix 3 and incorporated herein, shall <br />be an undivided one hundred percent (100%) interest in a certificate of deposit account <br />established by the BORROWER in the amount of one annual loan payment ($26,023.54), <br />hereinafter referred to as CD ACCOUNT. The CWCB shall use the funds contained in the CD <br />ACCOUNT for the purpose of paying principal and interest due under this contract not otherwise <br />paid by the BORROWER. Any amount withdrawn by the CWCB for this purpose shall be <br />replenished by the BORROWER within sixty days after such withdrawal. The CWCB shall not <br /> <br />Owl Creek Supply and Irrigation Company <br /> <br />Page 5 of 13 <br /> <br />Loan Contract <br />