PROJ01899

• Contract/PO #: C153686
• Contractor Name: Red Mesa Ward Reservoir and Ditch Company
• Contract Type: Grant
• Water District: 0
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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Recorded at_ RCPT# 71.1.801. 08/08/96 0351.PM 2PG
Reception No. ---LINDA DALEY LAPLATA CNTY CO DT

Recorder

DEED OF TRUST

THIS INDENTURE, made thisZ4....~ay of' JNJ.UA~I1~, between RED MESA
WARD RESERVOIR & DITCH COMPANY, whose address is 1 0 ounty Road 102, Hesperus,
Colorado 81326, hereinafter referred to as GRANTOR, and the Public Trustee of the County of LA
PLA TA, State of Colorado, hereinafter referred to as PUBLIC TRUSTEE,

('7'/

eANCElLED

WITNESSETH T J\]', WHEREAS, GRANTOR has executed a promissory note, dated_
/ - ~ ,iU!', for the principal sum of FIFTEEN THOUSAND Dollars
',y ($15,000, payable to the order of the STATE OF COLORADO for the use and benefit of the
~ Department of Natural Resources, Water Conservation Board, whose address is 1313 Sherman
~ ' Street, Room 721, Denver, Colorado 80203, after the date hereof.

AND WHEREAS, the GRANTOR is desirous of securing payment of the principal and interest
of said promissory note in whose hands soever the said note or any of them may be.

NOW, THEREFORE, the GRANTOR, in consideration of the premises and for the purpose aforesaid, does hereby grant, bargain, sell
and convey unto the said PUBLIC TRUSTEE in trust forever, the following described property, situated in the County of LA PLATA Colorado,
to wit: An tmdivided 100% interest in the water rights for Red Mesa Ward Reservoir & Ditch Company consiting of 2,898.28 acre-feet
CONDITIONAL, date of original decree: 3/21/66; Case No.: 807-C (W-53 and W-669); Priority No. 1965-1; Priority Date: 4/30/1905.

FEB 2 6 2004

EcMard J. MIIra PtAIIic TrustBe
La PlaIa Cow1ty. Colorado

TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances thereunto belonging: In Trust
nevertheless, that in case of default in the payment of said note, or any part thereof, or in the payment of the interest thereon, according
to the tenor and effect of said note or in the payment of any prior encumbrances, principal or interest, if any, or in case default shall be made
in or in case of violation or breach of any of the terms, conditions, covenants or agreements herein contained, the beneficiary hereunder
or the legal holder of the indebtedness secured hereby may declare a violation of any of the covenallts her-ein contained 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 receipt
of such notice of election and demand for sale, 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 situated, 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 heirs 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 LA PLA TA, a copy of which notice shall be mailed within ten days from the date of the first publication thereof to the GRANTOR at tt-e
address herein given and to such person or persons appearing to have acquired a subsequent record interest in said property at the address
givEln in the recorded instrument; where only the county and state is given as the address then such notice shall bo mailed to thz county
seat, and to make and give to the purchaser of such property at such sale, a certificate in writing describing such 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 sh.all be redeemed as is provided by law; and said PUBLIC TRUSTEE shall, upon demand by the person holding the said certificate of
purchase, when said demand is made, or upon d~mand by the person entitled to a deed to and for the property purchased, at the time such
demand is made, the time for-redemption having expired, make and execute to such-person a deed to the said property purchased, which
said deed shall be in the ordinary form of a conveyance, and shall be signed, acknowledged and delivered by the said PuBUC TRUSTEE and
shall convey and quitclaim to such person entitled to such deed, the said property purchased as aforesaid and all the right, title, interest,
benefit and equity of redemption of the GRANTOR, its heirs and assigns made therein, and shall recite the sum for which the said property
was sold and shall refer to the power of sale therein contained, and to the sale made by virtue thereof; andinp~se. ,01an assignment of such
certificate of purchase, or in case of the redemption of such property, by a subsequent encumbrancer, such'asl,?ignmantQr redemption shall
also be referred to in such deed; but the notice of sale need not be set out in such deed and the PUBLIC TRUSTEEShali;out J)l the proceeds
or avails of such sale, after first paying and retaining all fees, charges and costs of making said sale.. pay to-the belie'ficiary nereunder or
the legal holder of said note the principal and interest due on said note according to the tenor and effect'thereof;'andallmoheys'advanced
by such beneficiary or legal holder of said note for insurance, taxes and assessments, with interest thereon at eight percent (8%) pei annum,
rendering the overplus, 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 heirs and assigns, and all other persons claiming the said property, or any part thereof,
by, from, through or under the GRANTOR, or any of them. The holder of said note may purchase said 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 heirs, personal representatives or assigns covenants and agrees to and with the PuBUC TRUSTEE,
that at the time of the unsealing of and delivery of these presents it is well seized of the said land and tenements in fee simple, and has good
right, full power and lawful authority to grant, bargain, sell and convey the same in the manner and form as aforesaid; hereby fully and
absolutely waiving and releasing all rights and claims it may have in or to said lands.. tenements, and property as a Homestead Exemption,
or other exemption, under and by virtue of any act of the General Assembly of the State of Colorado, or as any exemption under and by
virtue of any act of the United States Congress, now existing or which may hereafter be passed in relation thereto and that the same are
free and clear of all liens and encumbrances whatever, and the above bargained property in the quiet and peaceable possession of the PUBLIC
TRUSTEE, its successors and assigns, against all and every person or persons lawfully claiming or to claim the who or any part thereof, the
GRANTOR shall and will Warrant and Forever Defend.

Until payment in full of the indebtedness, the GRANTOR shall timely pay all taxes and assessments levied on the property; any and
all amounts due on account of principal and interest or other sums on any senior encumbrances~ if any; and will keep all improvements that
may be on said lands insured against any casualty loss, including extended coverage, in a company or companies meeting the net worth
requirements of the beneficiary hereof in an amount not less than the then total indebtedness. Each policy shall contain a loss payable clause
naming the beneficiary as mortgagee and shall further provide that the insurance may not be canceled upon less than ten days written notice
to the beneficiary. At the option of the beneficiary, the original policy or policies of insurance shall be delivered to the beneficiary as further
security for the indebtedness. Should the GRANTOR fail to insure and deliver the policies or to pay taxes or assessments as the same fall
due, or to pay any amounts payable upon senior encumbrances, if any, the beneficiary may make any such payments or procure any such
insurance, and all monies so paid with interest thereon at the rate of eight percent (8%) per annum shall be added to an become a part of
the indebtedness secured by this deed of trust and may be paid out of the proceeds of the sale of the property if not paid by the GRANTOR.