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<br />ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY <br /> <br />In consideratio~ of and as security for a loan ("Loan") from the Colorado Water <br />Conservation Board ("Secured Party") to the Highland Ditch Company ("Debtor") pursuant to <br />Contract Encumbrance Number C150015, ("Loan Contract"), Debtor hereby assigns, <br />transfers and grants to Secured Party a security interes\ in the funds contained in Deposit <br />Account No. ?c.t-Q'1/0 ("Account") at ~t'r'S'"t fJk"TIt1Uft.L 8A-~ ("Bank"), <br />hereinafter referred to as the Collateral. Debtor warrants that the Account has been <br />established as a special deposit with the funds deposited therein to be used. solely for <br />repayment of the Loan to Secured Party. <br /> <br />The Collateral secures the payment and performance of all of Debtor's present and <br />future, direct or indirect, absolute and contingent, express and implied, indebtedness, <br />liabilities, obligations and covenants (cumulatively "Obligations") under the Loan Contract <br />described above and any amendments thereto. This Assignment is made solely to secure <br />performance of the Obligations and is made subject to the following terms, covenants and <br />conditions: <br /> <br />1. This Assignment is effective upon signing and will remain in full force and effect until <br />Secured Party specifically terminates the security interest in the Collateral in writing. <br />Secured Party is not required to release, this ASSft, ent until the Loan is paid in full. <br /> <br />2. Neither the Debtor nor anyone else (ex!e t~," lI.lIParty, ) has any rig"ht to withdraw any <br />funds from the Account until the Se y rteats !this Assignment in writing, <br />except that, at Debtor's request, the Ba 's a~I" ,,~s of funds from the Account <br />to the Secured Party. <br /> <br />3.~:b~~c~~~~~:i~f d:~~U~f ~~~e;o~:w~;~~;~~~~t%~:~(a(r i~~~~S~i~~~S~i~~~~ <br /> <br />make any payment under the Loan Contract when due; (b) default in_ the payment or <br />performance of any obligation, covenant, agreement or liability contained or referred to in <br />the Loan Contract; (c) the making of any levy, seizure, or attachment on the Collateral; <br />(d) the Debtor becoming insolvent or unable to pay debts as they mature. Secured Party <br />shall give the Debtor written notice of any alleged default and an opportunity to cure <br />within thirty (30) days of receipt of such notice before Debtor shall be considered in <br />default for purposes of this Assignment. <br />4. Upon or at any time after a default under the Loan Contract as described in Paragraph 3 <br />above, Secured Party shall be entitled to notify the Bank to pay Secured Party the funds <br />contained in the Account. Secured Party shall apply such moneys first to costs <br />associated with collection, including, but not limited to, reasonable attorney's fees, next to <br />late charges, if any, then to outstanding interest, and then to the principal sum of the <br />Loan. <br /> <br />5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral <br />or any interest therein as. long as this Assignment is in effect. <br />6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under <br />this Assignment must be contained in a writing signed by Secured Party. A waiver on <br />one occasion shall not constitute a waiver on any other occasion. <br />7. The rights and remedies of the Secured Party stated in this Assignment are in addition to <br /> <br />Appendix 5 to Loan Contract C150015 <br />