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<br />"/ <br /> <br />ASSIGNMENT OF CERTIFICATE OF DEPOSIT <br />OWNER: <br /> <br />Summit Reservoir and Irrigation Company <br />P.O. Box 127 <br />Dolores, CO, 81323 <br /> <br />Colorado Water Conservation Board <br /> <br />LENDER: <br /> <br />COLLATERAL: Certificate of Deposit No. HaUl, <br /> <br />BANK: Name The Dolores State Bank <br />Address Box 848 <br />Dolores. Colorado 81323 <br />Phone Number (970) 882-7600 <br />Contact, Title Donald K. Ma i ors. President <br /> <br />LOAN CONTRACT: C153770 dated August 14,1997, as amended dated May 1, 2002 <br /> <br />PROMISSORY NOTE: $300,000, dated May 1, 2002 pursuant to LOAN CONTRACT <br /> <br />In consideration of and as security for repayment of a loan from the LENDER to the OWNER <br />pursuant to the PROMISSORY NOTE and LOAN CONTRACT, OWNER hereby assigns to the LENDER <br />COLLATERAL issued by the BANK. OWNER warrants that said Certificate of Deposit Account has <br />been established as a special deposit with the funds deposited therein to be used solely to <br />secure repayment of the loan. <br /> <br />The COLLATERAL secures the payment and performance of all of OWNER'S obligations and <br />covenants (cumulatively "OBLIGATIONS") pursuant to the LOAN CONTRACT and the PROMISSORY <br />NOTE described above and any amendments thereto. This Assignment is made to secure <br />performance of the OBLIGATIONS and is made subject to the following terms, covenants and <br />conditions: <br /> <br />1. OWNER shall deliver the original Certificate of Deposit to LENDER upon the execution of this <br />Assignment. This Assignment shall continue until LENDER specifically terminates the <br />security interest in the COLLATERAL in a writing signed by LENDER. <br /> <br />2. LENDER shall be entitled to notify the BANK to pay LENDER any monies owing OWNER under <br />the Certificate of Deposit in the event of a default under the OBLIGATIONS. The LENDER shall <br />apply such monies first to costs associated with collection, including reasonable attorney's <br />fees, next to outstanding interest, and then to the principal sum of the LOAN. In the event <br />that OWNER possesses or receives possession of any instruments or other remittances with <br />respect to the Certificate of Deposit following the giving of such notification, OWNER shall <br />hold such instruments and other remittances in trust for LENDER apart from OWNER'S other <br />property, endorse the instruments and other remittances to LENDER, and immediately <br />provide LENDER with possession of the instruments and other remittances. <br /> <br />3. The OWNER shall be in default under this Assignment upon any of the following events or <br />conditions: (a) failure or omission to make any payment under the PROMISSORY NOTE when <br />due; (b) default in the payment or performance of any obligation, covenant, agreement or <br />liability contained in the LOAN CONTRACT or PROMISSORY NOTE; (c) the making of any levy, <br />seizure, or attachment on the COLLATERAL; (d) the OWNER becoming insolvent or unable to <br />pay debts as they mature. The LENDER shall give the OWNER written notice of any alleged <br />default and an opportunity to cure within thirty (30) days of receipt of such notice before <br />the BORROWER shall be considered in default for purposes of this Assignment. <br /> <br />,$2,727.56 <br /> <br />Appendix 3 to Contract C153770 Amendment No.1 <br />