PROJ01887 ‎(2)‎

• Contract/PO #: C150229
• Contractor Name: Logan Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

(PLEDGE OF REVENUES)

DATE: November 8, 2006

DEBTOR: LOGAN IRRIGATION DISTRICT

SECURED PARTY: COLORADO WATER CONSERVATION BOARD
1313 SHERMAN STREET, ROOM 721
DENVER, CO 80203

PROMISSORY NOTE: $505,000, DATED November 8,2006

TERMS OF REPAYMENT: 2.35% PER ANNUM FOR 20 YEARS

LOAN CONTRACT: C150229, DATED November 8, 2006

PLEDGED REVENUE: Sums levied and collected pursuant to statute to pay expenses of
the Borrower, including servicing debt, and any other funds legally available to the
Borrower, in an amount sufficient to pay the annual payment under the Loan Contract.

To secure payment of the loan evidenced by the PROMISSORY NOTE payable in
accordance with the TERMS OF REPAYMENT, 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 (PLEDGED REVENUE).
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 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.
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 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:

Appendix 4 to Loan Contract C150229
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