PROJ01923 ‎(2)‎

• Contract/PO #: C150126
• Contractor Name: Kremmling, Town of
• Contract Type: Loan
• Water District: 50
• County: Grand
• Loan Projects - Doc Type: Contract Documents

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SECURITY AGREEMENT

(PLEDGE OF REVENUES)

DATE: SEPTEMBER 15,2004
DEBTOR: TOWN OF KREMMLlNG, COLORADO, ACTING BY AND THROUGH ITS
WATER ENTERPRISE
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $1,689,750, DATED SEPTEMBER 15,2004
TERMS OF REPAYMENT: 4.25% PER ANNUM FOR 30 YEARS
LOAN CONTRACT: C150126, DATED SEPTEMBER 15,2004
COLLATERAL: All revenues pledged to repay the loan as described in Pledge of
Revenues provisions of the LOAN CONTRACT and Debtor's
Ordinance No. 484 adopted July 21, 2004, attached to the Loan
, Contract as Appendix 3.

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 COLLATERAL.
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 COLLATERAL free from any adverse lien, security interest or encumbram;es; and
that DEBTOR will defend the COLLATERAL 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 COLLATERAL 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 CONTI~CT 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 COLLATERAL pursuant to the
terms of this agreement.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that
DEBTOR keeps the COLLATERAL in an account separate from other revenues of DEBTOR
and does not use the COLLATERAL for any purpose not permitted by the CONTRACT. Upon
default, SECURED PARTY shall have the immediate right to the possession of the
COLLATERAL.
DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the
. following events or conditions:
a. default in the payment or performance of any obligation contained herein or in the
Promissory Note or Loan Contract;

AppendiX 4to Loan Contract C150126