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<br />BORROWER, interest shall accrue at the rate set by the CWCB for this loan, The CWCB shall
<br />calculate the amount of the interest that accrued prior to completion of the PROJECT and the
<br />BORROWER shall repay that amount to the CWCB either within ten (10) days after the date the
<br />CWCB determines that the PROJECT has been substantialiy completed, or, at the CWCB's
<br />discretion, said interest shall be deducted from the final disbursement of loan funds that the
<br />CWCB makes to the BORROWER.
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<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 will not be completed,
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<br />4, BORROWER'S Authority To Contract. The BORROWER'S board of directors (and stockholders,
<br />if -requireG) -have-adGpted -resolutions,atlac!:led .as Appendix 3-,.and" incOlpOr:ated -herein,
<br />authorizing the BORROWER to perform in accordance with the terms of this contract,
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<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 to
<br />sign such documents on behalf of the BORROWER and to bind the BORROWER;
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<br />b, the BORROWER'S board of directors and/or stockholders for the Silver Springs Trout Farm,
<br />Inc, have validly adopted resolutions approving this contract:
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<br />c, there are no provisions in the BORROWER'S articles of incorporation or bylaws or any state
<br />or local law that prevent this contract from binding the BORROWER; and
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<br />d, the contract will be valid and binding against the BORROWER if entered into by the CWCB,
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<br />6, Debt Service Reserve Account. To establish and maintain the debt service reserve account,
<br />the BORROWER shall deposit an amount equal to one-tenth of an annual payment into its debt
<br />service reserve fund on the due date of its first annual loan payment and annually thereafter
<br />for the first ten years of this loan, In the event that tbe BORROWER applies funds from this
<br />account to repayment of the loan, the BORROWER shall replenish the account within ninety
<br />(90) days of withdrawal of the funds,
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<br />7, Collateral. The collateral for this loan is described in Section 4 (Collateral) of the
<br />Project Summary, and secured by the instrument(s) attached hereto as Appendix 4
<br />and incorporated herein.
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<br />8, Collateral during Repayment. The BORROWER shall not sell, convey, assign, grant,
<br />transfer, mortgage, pledge, encumber, or otherwise dispose of the collateral for this loan so
<br />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,
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<br />9, Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
<br />principal, all accrued interest, and late charges, if any, as specified in the Promissory Note, the
<br />CWCB agrees to release and terminate any and all of the CWCB's right, title, and interest in
<br />and to the collateral and the property pledged to repay this loan,
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<br />Loan CDntract
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