PROJC01739 ‎(3)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

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-19980767 -06/02/1998 03:06P DT Ben{'Co. -CO
1 of 2 R 11.00 D 0.00 Palli Nickell

Deed of Trust

This indenture, made this /~day of June 1998, between the Lower Arkansas Water Management
Association, whose address is P.O. Box 1161, Lamar, CO 81052, hereinafter referred to as GRANTOR, and the Public Trustee of the
County of Prowers, State of Colorado, hereinafter referred to as PUBLIC TRUSTEE,

Witnesseth, that whereas, GRANTOR has executed a Promissory Note, which is a part of Loan Contract No.
C153768 (the Contract), for a loan in the principal sum of $2,300,000.00 to be repaid to the State of Colorado for the use and benefit of the
Department of Natural Resources, Water Conservation Board, whose address is 1313 Sherman Street, Room 721, Denver, Colorado
80203, with interest thereon from the date of first disbursement of funds under the Contract at the effective interest rate of 3% per annum,
payable in 40 annual installments, in accordance with the terms of the Promissory Note, or until loan is paid in full.
. And whereas, the GRANTOR is desirous of securing payment of the principal and interest of said promissory note to the
State of Colorado.

Now, therefore, the GRANTOR, in consideration of the premises and for the purpose aforesaid, does hereby grant,
bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, to wit: 252 shares of capital stock of the Highland Irrigation
Company, evidenced by stock certificate number 322. The shares represent Grantor's pro rata interest in the following water
rights: Priority No. 27, decreed for 16.6 cfs in the original adjudication for Water District No.. 19 on August 10, 1903, with a May 31,
1866 appropriation date, which was originally decreed to the Sizer Ditch and'was transferred to the Highland Canal by decree of the
Bent County District Court dated November 11, 1910. Priority No. 97, decreed for 7.4 cfs in the original adjudication for Water District
No. 19 on August 10,1903, with an April 1, 1884 appropriation date, which was originally decreed to the Sizer Ditch and transferred to
the Highland Canal by decree of the Bent County District Court dated November 11, 1910. Priority No. 120, decreed for 38.5 cfs by
the Bent County District Court on August 30, 1922, with a March 1, 1909 appropriation date, (collectively or hereinafter referred to as the
"Property").
To have. and to hold the same, together with all and singular the privileges and appurtenances thereunto belonging: In
Trust nevertheless, that in case of default in the payment of said note, or any part thereof, or in the payment of the interest thereon,
accbi"ding to the tenor and effect of said note or in the payment of any priorencumbrances, principal or interest, if any, or in case default
shall be made in or in case of violation or breach of any of the terms, conditions, covenants or agreements contained in the Contract, the
beneficiary hereunder may declare a violation of any of the covenants contained in the Contract and elect to advertise said Property for
sale, and demand such sale by filing a notice of such election and demand for sale with the PUBLIC TRUSTEE. Upon receipt of such notice
of election and demand for sale, the PUBLIC TRUSTEE shall cause a copy of the same to be recorded in the recorder's office of the county in
which said Property is situated, it shall and may be lawful for the PUBLIC TRUSTEE to sell and dispose of the same (en masse or in separate
parcels, as the said PUBLIC TRUSTEE may think best), and all the right, title and interest of the GRANTOR, its successors or assigns therein, at
public auction at such time and at such location as shall be designated in the PUBLIC TRUSTEE'S Notice of Sale, for the highest and best
price the same will bring in cash, four weeks public notice having been previously given of the time and place of such sale; advertisement
once each week for five consecutive weeks, in some newspaper of general circulation at that time published in said County of Prowers, a
copy of which notice shall be mailed within ten days from the date of the first publication thereof to the GRANTOR at the address herein
given and to such person or persons appearing to have acquired a subsequent record interest in said Property at the address given in the
recorded instrument; where only the county and state is given as the address then such notice shall be mailed tot~~\l::ot:JArJI~~^at, and to
make and give to the purchaser of the Property at such sale, a certificate in writing describing the Property purc:h~s~d;\and the SII1,T1 paid
therefor, and the time when the purchaser (or other person entitled thereto) shall be entitled to the deed therefor,.unless'the'same!;llall be
redeemed as is provided by law; and said p"UBLlc'TRUSTEE shall, upon demand by the person holding the saidce,~j~tat~!of(P!Jr~l1as~, when
said demand is made, or upon demand by the person entitled to a deed to and for the Property purchased. at the time sl,lch demand is
made, the time for redemption having expired, make and execute to such person a deed to the Property pur.5has~d, 'Which said deed shall
be in the ordinary form of a conveyance, and shall be signed, acknowledged and delivered by the said PUBL,IC':TRUSTEE 13\'~~h~li ~6nvey
and quitclaim to such person entitled to such deed, the Property purchased as aforesaid and all the right, title;, iriJer~st, benefit and equity
of redemption of the GRANTOR, its successors and assigns made therein, and shall recite the sum for' which 'the s~i&pidPy,ttY \~as sold and
shall refer to the power of sale therein contained, and to the sale made by virtue thereof; and in case of an ass!gn;rientq(,s~~l;ti::ertificate of
purchase, or in case of the redemption of the Property, by a subsequent encumbrancer, such assignmenJ~of' redemptio(l"shall also be
referred to in such deed; but the notice of sale need not be set out in such deed and the PUBLIC TRUSTEE sha}l,;dut b(the proceeds or avails
of such sale, after first paying and retaining all fees, charges and costs of making said sale, pay to the ben.e~9i::)iy h'ereuhdenhe principal
and interest due on said note according to the tenor and effect thereof, and all moneys advanced by such'jj~nefici2:y' or legal holder of
said note for insurance, taxes and assessments, with interest thereon at ten per cent per annum, renderi~g :fge. ~prpl~s,df~any.. unto the
GRANTOR, its legal representatives or assigns; which sale and said deed so made shall be a perpetual bar; b9ih,h-U~;Nand ~q.UitY, against
the GRANTOR, its successors and assigns, and all other persons claiming the Property, or any part thereof, by, froll:l: ~h!pugn or under the
GRANTOR, or any of them. The holder of said note may purchase Property or any part thereof; and it shall not be obligatory upon the
purchaser at any such sale to see to the application of the purchase money. '
And the GRANTOR, for itself and its successors or assigns covenants and agrees to and with the PUBLIC TRUSTEE, that at the time
of the unsealing of and delivery of these presents it is well seized of the Property in fee simple, and has good right, full power and lawful

Appendix 6 to Loan Contract No. C153768