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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Deed of Trust

This indenture, made this J2!!ay of. ~ ~ 1997, between the Lower Arkansas Water
Management Association, whose address is P.O. Box 1161, Lamar, CO 1052, 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
#C153768 (the Cpntract), 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 Oepartment of Natural Resources, Water Conservation Board, whose address is 1313 Sherinan 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 tenns 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 f1foresaid, does hereby
grant, bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, to wit: ,2 shares of c:apit~1 stoc~ of the Highland
Irrigation Company, evidenced by the stock certificates no. 305, The shares repres'ent 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'Oitch 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, 190n 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, th,a't in case of default in the payment of said note, or any part there~f, orin the payment of the
interest thereon, according to the tenor and effect of said note or in the payment of ~my prior encumbrances, principC\lor interest, if
any, or in case default shall be made in or in case of violation orbreach of anyof the tenns, 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 reeeiptof such notice of election and demand for sate, 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 situ",ted;' 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~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 to the county seat, and to
make and give to the purchaser of the Property at such sale, a certificate in writing describing the Property purchased, and the
sum paid therefor, and the time when the purchaser (or other person entitled thereto) shall be entitled to the deed therefor; unless
the same shall be redeemed a~'.is provided by law;<?nd :?aid, PUBLIC TRUSTEE shall, upon demand by the person hol~i.~g\ t~~js,aid
certificate of purchase, when said deman~ is made, or upon,cjemand by the person entitled to a deed to andfor the Property
purchased, at the time suc.h demand is made, thetime for rede"rilption having expired, make and execute to such'.i~e~on a deed to
the Property purchqsljlp, which said deed shall be in the ordinary form of a conveyance, and shall be signed,_.?'c~i;Qwledged and
delivered by t~e~?ip PU~tlC TRUSTEE and shall convey and quitclaim to such person entitled to such deed, the.Pro,perty purchased
as afores,~icj1J;ind all ,the right, title, interest, benefit arid equitY of redemption of the GRANTOR, its successors;~dd assig~s mad~
therein, arid 's~all recit~ the sum for which, the said Property was sold and shall refer to the power of sale therei,1li~~I:\taii1ed,al}1~t<?'
the ~al~l~aq~ by vi~ue th~reof!. andiifl G~se of a[! ,~ssign~ent of such ~ertificate of purchase, or in. case of the re,de'rt;l~}fofl ?f,t~,~,;.:-t
Prop.!'!n.y,:by a subsGquef1t.encumor~mcer,such assignment or redemption shall also be referred to In such deed; but;t~e PJt~te,of
sale iJe,ed'"nQt.9~ set out in such deed and the PUBLIC TRUSTEE shall. out of the proceeds or avails of such sale, attetfirstpayil)g:
and r~taini~g:ali f~es, charges and costs of making said sate, pay to the beneficiary hereunder the principal and interest due on'
said note 2Cyording'to ,the tenor and effect thereof, and all moneys advanced by such beneficiary or legal holder of said note for
insurance;'ta,~~s' 'and ;3ssessments, with interest thereon at ten per cent per annum, rendering the surplus, if any, unto the
GRANTOR, its legal 'representatives or assigns; which sale and said deed so made shall be a perpetual bar, both in law and equity,
against the GRANTOR, its successors and assigns, and all other persons claiming the Property, or any part thereof, by, from,
through or under the GRANTOR; or any of them, The holder 6fsaid 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

Appendix 6 to Loan Contract #C153768