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6. That the DEeroR's articles of incorporation and by-laws do not prohibit any term or condi6on <br />of this agreement. <br />UNTIL DEFAULT DEBroR may have possession of the CouArEw4�, provided that <br />DEaroR keeps the Co��rE� in an ac:count separate from other revenues of DEBroR and <br />does not use the Co��arEwa� for any purpose not permitted by the CotvTw4cT. Upon default, <br />SECURE� PARrY shall have the imm�iate right to the possession of the CounrE�. <br />DEBTOR SHALL BE IN DEFAULT <br />following events or conditions: <br />a. default in the payment or perFormance <br />Promissory Note or Loan Contract; <br />under this agreement upon any of the <br />of any obligation contained herein or in the <br />b. dissolution, termination of e�astence, insoivency, business failure, appointment of a <br />receiver of any part of the property of, assignment for the benefit of creditors by, or the <br />commencemen# of any proceeding under any bankruptcy or insolvency law of, by or <br />against DEBroR; or <br />c. the making or fumishing of any warranty, repnesentation or statement to SECURED <br />P�rv by ar on behalf af DEaroR which proves to have been false in any material <br />respect when made or fumished. <br />UPON SUCH DEFAULT and at any time thereafter, SECUrt�o P�r�r shall have tt�e <br />remedies of a secure�l party under Article 9 ofi the Colorado Uniform Commercial Code. <br />SECURE� PARrY may require DEaroR to deliver or make the Co��►TE�� available to SECUREo <br />PnRN at a place to t� designated by SECU�� PaRnr, which is reasonably corivenient to both <br />parties. Expenses of retaking, holding, preparing for sale, selling or the like shali indude <br />SECURED PARTY reasonable attomey's fiees and legal expenses. <br />The SECURE� P� shall give the DEaroR written notice of any alleged default and an <br />opportunity to cure within thirty (30) days of receipt of such notice before the DEeroR shall be <br />considered in default for purposes of this Security Agreement. No default shall be waived by <br />SECURED PARTY P.Xt�pt i11 WI'ltl�9 and no waiver by SECURE� P�'rY of any default shall operate as <br />a waiver of any other default or of the same default on a iuture occasion. The taking of tt�is security <br />agreement shall not waive or impair any other security SECUt�� P�t'nr may have or hereafter <br />acquire for the payment of the above indebtedness, nor shall the taking of any such additional <br />security waive or impair this security agreement; but SECURE� PARn shall retain its rights of set-off <br />against DEBTOR. In the event court action is deemed necessary to enforce the terms and conditions <br />set forth herein, said action shall only be brought in the Distric� Court for the City and Couniy of <br />Denver, State of Colorado, and DESTOR consents to venue and personal jurisdiction in said Court. <br />All rights of SECUt�� P,�trY hereunder shall inure to the benefit of its successors and <br />assi�gns; a�d,all promises and duties of DEBTOR shall bind its successors or assigns. <br />g DEeTOR: Number Six Ditch Company, a <br />� - Colorado�rofit corporation <br />":�E��t'.; <br />y a � <br />� f _ _ ! BY <br />;�y� �: , �, ' <br />B `} ' E' ' , Vv � I <br />Y <br />Dan : V1lhitehe , Secretary-Treasurer <br />Jack Burk, President <br />Appendix 4 to Loan Contract C150205 <br />Page 2 of 2 <br />