LPPD000414

• Contract/PO #: C150151
• Contractor Name: Windsor Reservoir and Canal Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

OCTOBER 1, 2003 PAID

THE WINDSOR RESERVOIR & CANAL C07T.,. ...
COLORADO WATER CONSERVATION BoAl::ll. ~. Fell'
$681,750, DATED OCTOBER 1,2003\,.\
2.5% INTEREST PER ANNUM FOR 30 YEARS
C150151, DATED OCTOBER 1,2003
All revenues derived from assessments on stock and all 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 REPAYMENT TERMS, or until all principal, interest, and late charges, if
any, are paid in full, the DEBTOR grants to SECURED PARTY a security interest in the above
described PLEDGED PROPERTY.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That 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 PLEDGED PROPERTY free from any adverse lien, security interest or encumbrances;
and that DEBTOR will defend the PLEDGED PROPERTY 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 DEBTOR 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 PLEDGED PROPERTY 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 LOAN CONTRACT
and by its representations herein, DEBTOR shall be estopped from asserting for any
reason that it is not authorized to grant a security interest in the PLEDGED PROPERTY
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 PLEDGED PROPERTY.
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 PLEDGED PROPERTY,
provided that DEBTOR keeps the PLEDGED PROPERTY in an account separate from other
revenues of DEBTOR and does not use the PLEDGED PROPERTY for any purpose not
permitted by the LOAN CONTRACT. Upon default, SECURED PARTY shall have the immediate
right to the possession of the PLEDGED PROPERTY.
DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the
following events or conditions:

DATE:
DEBTOR:
SECURED PARTY:
PROMISSORY NOTE:
REPAYMENT TERMS:
LOAN CONTRACT:
PLEDGED PROPERTY:

Appendix 4 to Loan Contract C150151