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<br />COLLATERAL.
<br />DEBTOR SHAll BE IN DEFAULT under this agreement upon any of the
<br />following events or c~nditions:
<br />a. default in the payment or performance of any obligation contained herein or in the
<br />Promissory Note or Loan Contract;
<br />b. dissolution, termination of existence, insolvency, business failure, appointment of a
<br />receiver of any part of the property of, assignment for the benefit of creditors by, or
<br />the commencement of any proceeding under any bankruptcy or insolvency law of,
<br />by or against DEBTOR; or
<br />c. the making or furnishing of any warranty, representation or statement to SECURED
<br />PARTY by or on behalf of DEBTOR which proves to have been false in any material
<br />respect when made or furnished.
<br />UPON SUCH DEFAULT and at any time thereafter, SECURED PARTY shall have the
<br />remedies of a secured party under Article 9 of the Colorado Uniform Commercial Code.
<br />SECURED PARTY may require DEBTOR to deliver or make the COLLATERAL available to
<br />SECURED PARTY at a place to be designated by SECURED PARTY, which is reasonably
<br />convenient to both parties. Expenses of retaking, holding, preparing for sale, selling or the
<br />like shall include SECURED PARTY'S reasonable attorney's fees and legal expenses.
<br />The SECURED PARTY shall give the DEBTOR written notice of any alleged
<br />default and an opportunity to cure within thirty (30) days of receipt of such notice before
<br />the DEBTOR shall be considered in default for purpq~es of this Security Agreement. No
<br />default shall be waived by SECURED PARTY except in writing, and no waiver by SECURED
<br />PARTY of any default shall operate as a waiver of any other default or of the same default
<br />on a future occasion. The taking of this security agreement shall not waive or impair any
<br />other security SECURED PARTY may have or hereafter acquire for the payment of the above
<br />indebtedness, nor shall the taking of any such additional security waive or impair this
<br />security agreement; but SECURED PARTY shall retain its rights of set-off against DEBTOR. In
<br />the event court action is deemed necessary to enforce the terms and conditions set forth
<br />herein, said action shall only be brought in the District Court for the City and County of
<br />Denver, State of Colorado, and DEBTOR consents to venue and personal jurisdiction in said
<br />\ Court.
<br />All rights of SECURED PARTY hereunder shall inure to the benefit of its successors
<br />and assigns; and all promises and duties of DEBTOR shall bind its successors or assigns.
<br />DEBTOR: Little Thompson Water District
<br />",';,':J ': U ~I Wl./',,; acting by and through the Little Thompson
<br />. . .,~,.), ~(,,) .~,' Water District Water Activity Enterprise
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