PROJ01948 ‎(3)‎

• Contract/PO #: C153794
• Contractor Name: Colorado Water Protective and Development Association
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Contract Documents

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ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY

In consideration of and as security for a loan from the COI~rado Water
ConservatiOJ1 Board ("Secured Party") to the Colorado Water Protective and
Development Association ("Debtor") in the amount of $60,000 ("Loan,,)1 pursuant to
Contract Encumbrance Number C153794, ("Loan Contract"), Debtor heteby assigns,
transfers and grants to Secured Party a security interest in the funds contairled in Deposit
Account No. (the "Account") at I ("Bank"),
hereinafter referred to as the Collateral. Debtor warrants that the Acco~nt has been
established as a special deposit with the funds deposited therein to be u~ed solely for
repayment of the Loan to Secured Party. ! H_____ --- mu -
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The Collateral secures the payment and performance of all of Defutor's present
and future, direct or indirect, absolute and contingent, express and implied, ihdebtedness,
liabilities, obligations and covenants (cumulatively "Obligations") under the Lloan Contract
described above and any amendments thereto. This Assignment is made s91e1y to secure
performance of the Obligations and is made subject to the following terms, covenants and
conditions: I

'1. This Assignment is effective upon signing and will remain in 'full force ard effect until
Secured Party specifically terminates the security interest in the Collateral in writing.
Secured Party is not required to release this Assignment until the Loan isl paid in full.

2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw
any funds from the account listed above until the Secured Party ~eleases this
Assignment in writing, except that, at Debtor's request, the Bank s~all allow the
transfer of the annual Loan payment in the amount of $7,397.46 to Secuied Party.

3. Debtor shall be in default under the Loan Contract for purposes of this Assignment
upon the occurrence of any of. the following events or conditions: (a) failure or
omission to make any payment under the Loan Contract when due; (b) :default in the
payment or performance of any obligation, covenant, agreement or liability contained
or referred to in the Loan Contract; (c) the making of any levy, seizure, 6r attachment
on the Collateral; (d) the Debtor becoming insolvent or unable to pay debts as they
mature. Secured Party shall give the Debtor written notice of any alleged default and
an opportunity to cure within thirty (30) days of receipt of such notice ~efore Debtor
shall be considered in default for purposes of this Assignment

4. Upon or at any time after a default under the Loan Contract as described in Paragraph
3 above, Secured Party shall be entitled to notify the Bank. to pay Secured Party the
funds contained in the Account. Secured Party shall apply such money~ first to costs
associated with collection, including, but not limited to, reasonable atlomey's fees,
next to outstanding interest, and then to the principal sum of the Loan. I

5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the
Collateral or any interest therein as long as this Assignment is in effect. I .

6. The modification or waiver of any of Debtor's obligations or Secured IParty's rights
under this Assignment must be contained in a writing signed by Secured Party. A
waiver on one occasion shall not constitute a waiver on any other occasic~n.

Appendix G to Loan Contract C153794 i
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