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<br />10, Warranties.
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<br />a, The BORROWER warrants that, by accepting the loan money under this contract and by its
<br />representations herein, the BORROWER shall be estopped from asserting for any reason
<br />that it is not authorized or obligated to repay the loan to the CWCB as required by this
<br />contract.
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<br />b, The BORROWER warrants that it has not employed or retained any company or person,
<br />other than a bona fide employee working solely for the BORROWER, to solicit or secure
<br />this contract and has not paid or agreed to pay any person, company, corporation,
<br />individual, or firm, other than a bona fide employee, any fee, commission, percentage,
<br />gift, or other consideration contingent upon Dr resulting from the award or the making of
<br />this contract.
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<br />c,Ttie BORROWER warrants tl'fafthe collalera1 for this loan Is not encumbere-d by any
<br />other deeds of trust or liens of any party other than the CWCB or in any other manner,
<br />except for any pre-existing Iien(s) identified in Section 5 (Schedule of Existing Debt) of the
<br />Project Summary, which sets forth the position of the lien created by this contract in
<br />relation to that pre-existing lien, Documentation establishing the relative priorities of said
<br />liens, if necessary, is attached to the Project Summary and incorporated herein,
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<br />11, Change of Ownership of Water Shares During Term of Contract. If the interest rate for
<br />this loan is based on the CWCB's agricultural or blended agricultural and municipal 'and/or
<br />commercial and/or industrial rates, the BORROWER agrees to notify the STATE of any change
<br />of the ownership of the water rights represented by its shares from irrigation to municipal Dr
<br />commercial or industrial use, The interest rate shall be revised when said rate would
<br />increase the original interest rate by 0,5% or more, The parties shall amend this contract,
<br />including a revised promissory note, to effect said change in interest rate,
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<br />12, Remedies For Default. Upon default in the payments to be made by the BORROWER under
<br />this contract, Dr if the BORROWER fails to comply with any provision of this contract, the
<br />CWCB, at its option, may:
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<br />a, suspend this contract and withhoid further loan disbursements pending corrective action
<br />by the BORROWER, and if the BORROWER does not cure the default as provided for below,
<br />permanently cease loan disbursements and deem the PROJECT substantially complete;
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<br />b. declare the entire principal amount, accrued interest, and late charges, if any, then
<br />outstanding immediately due and payable;
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<br />c, exercise its rights under any appendices to this contract, including, but not limited to, the
<br />Promissory Note, Security Agreement, Assignment of Certificate of Deposit, and/or Deed
<br />of Trust; and/or
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<br />d, take any other appropriate action,
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<br />The CWCB shall provide written notice to the BORROWER of any such default and shall give
<br />the BORROWER an opportunity to cure within thirty (30) days of receipt of such notice, All
<br />remedies described herein may be simultaneously or selectively and successively enforced,
<br />The CWCB may enforce the provisions of this contract at its option without regard to prior
<br />waivers of previous defaults by the BORROWER, through judicial proceedings to require
<br />specific performance of this contract, or by such other proceedings in law or equity as may be
<br />deemed necessary by the CWeB to ensure compliance with provisions of this contract and
<br />the laws and regulations under which this contract is executed, The CWCB's exercise of any
<br />or all of the remedies described herein shall not relieve the BORROWER of any of its duties
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<br />LDan Contract
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