C150209 Contract

• Contract/PO #: C150209
• Contractor Name: Central Weld County Water District
• Contract Type: Loan
• Water District: 2
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

(PLEDGE OF REVENUES)

DATE: FEBRUARY16,2006

DEBTOR: Central Weld County Water District, acting by and through
the Central Weld County Water District Water Activity
Enterprise

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

PROMISSORY NOTE: $4,994,955, DATED FEBRUARY 16, 2006

TERMS OF REPAYMENT: 3.7% PER ANNUM FOR 20 YEARS

LOAN CONTRACT: C150209, DATED FEBI~UARY 16, 2006

COLLATERAL: All revenues pledged to repay the loan as described in
Pledge of Revenues provisions of the LOAN CONTRACT, and
as described in the Hesolution of the Board of Directors of
the Central Weld County Water District acting by and
through its Water Activity Enterprise, dated September 29,
2005 (attached as LOAN CONTRACT 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, sl3curity interest or encumbrances; and
that DEBTOR will defend the COLLATERAL against all claims and demands of all persons
at any time claiming the same or any interest thl3rein.
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, securi~{ 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 CONTRACT and
by its representations herein, DEBTOR shall be estopped from asserting for any reason
that it is not authorized to grant a security inten3st 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

Appendix 4 to Loan Contract C150209
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