LPPD000301

• Contract/PO #: C150129
• Contractor Name: South Side Ditch Company
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES�
DATE: MARCH 1, 2003
DEBTOR: SOUTH SIDE DITCH COMPANY
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
1313 SHERMAN STREET, ROOM 721
DENVER, CO 80203
PROMISSORY NOTE: $72,720, DATED MARCH 1, 2003
REPAYMENT TERMS: 3.1 % INTEREST PER ANNUM FOR A PERIOD OF 30 YEARS
LoA►v CoNTw4CT: C150129 DATED MARCH 1, 2003
Co��aTE�,�: All revenues derived from assessments on stock and ail of
Debtor's right to receive said assessment revenues to repay
the loan as described in Pledge of Property provisions of the
LOAN CONTRACT.
To secure payment of the loan evidenced by the PROMissoRY NoTE payable in accordance
with the TERnns, or until all principal, interest, and late charges, if any, are paid in full, the
DEBTOR grants to SECURE� PaR a security interest in the above described Co��aTERa�.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. Tha# except for the security interest granted hereby and any other security interests
described in Section 5 of the Loan Contract Project Summary; DEBTOR is the owner of
the Co��,TE�,� free from any adverse lien, security interest or encumbrances; and that
DEBTOR will defend the Co��a,TE�ta,� against all claims and demands of all persons at any
time claiming the same or-any interest therein.
2. That the execution and delivery of this agreement by DEeTOR will not violate any law or
agreement governing DEBTOR or to which DEBTOR is a party.
3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever
upon the Co��a,rE�ta,� and not to permit the same to be attached or replevined.
4. That by its acceptance of the loan money pursuant to the terms of the CoNrR,acT arad by
its representations herein, DEaTOR shall be estopped from asserting for any reason that it
is not authorized to grant a security interest in the Co��,e,TE�,� pursuant to the terms of
this agreement.
5. To pay all taxes and assessments of every nature which may be levied or assessed
against the Co��arERa�.
6. That the DEBTOR's articles of incorporation and by-laws do not prohibit any term or
condition of this agreement.
UNTIL DEFAULT DEBTOR may have possession of the Co��TE�4�, provided that
DEaroR keeps the Co��rE�� in an account separate from other revenues of DEaTOR and
does not use the Co��aTERa� for any purpose not permitted by the CoNT�,cT. Upon
default SECURED PARTY shall have the immediate right to the possession of the
COLLATERAL.
Appendix 4 to Loan Contract C150129