C150058A PIF Contract - Laserfiche WebLink

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SECURITY AGREEMENT DEBTOR: The Dolores Water Conservancy District, acting by and through the Dolores Water Conservancy District Water Activity Enterprise P.O. Box 1150 Cortez, CO 81321 SECURE~ PaRN: State of Colorado - Colorado Water Conservation Board 1313 Sherman Street, Room 721 Denver, CO 80203 Co~~,TERa~: Contract Rights (Code: 030) DEBTOR, for consideration, hereby grants to SECURE~ PARN a security interest in the following property and any and all additions, accessions and substitutions thereto or therefore, hereinafter called the Co~~aTEFta~: The fund established under an Investment Agreement between the BoRROwER and MBIA Inc. dated December 6, 2002, which is pledged to repay the amount loaned to Debtor by Secured Party, as described in the Pledge of Fund Provisions contained in Loan Contract No. C150058 dated December 10 ~ CONTRACT). To secure payment of the indebtedness i~ i-~ ~ e Promissory Note dated December 10, 2002, between the above named partie~~,h~~i , PaYa to the SECURED PARTY, the loan amount of $5,461,200 at an interest rate of o n m for a period of 30 years in accordance with said Promissory No til ,, p~~p~ ~ rest, and late charges, if any, are paid in full. ~: ~ DEBTOR EXPRESSLY WARRANTS D COVENANTS: 1. That except for the security interest granted hereby, DEBTOR IS, or to the extent that this agreement states that the Co~uaTE~,~ is to be acquired after the date hereof, will be, the owner of the Co~~TE~~ free from any adverse lien, security interest or encumbrances; and that DEBTOR will defend the Co~~aTERa~ against all claims and demands of all persons at anytime ci~i~ning the sa~ne or any intere5t ther~in. 2. That the execution and delivery of this agreement by DEBTOR will not violate any law or agreement governing DEBTOR or to which DEaTOR is a party. 3. That DEa'roR's by-laws do not prohibit any term or condition of this agreement. 4. That by its acceptance of the loan money pursuant to the terms of the CorvTw~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. 5. To pay all taxes and assessments of every nature which may be levied or assessed against the COLLATERAL. 6. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the Go~ ~ nTF!~.n~ an~ not t~ perm~t the same to ~P attached or replevine~. 7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations, ordinances, articles of incorporation or by-laws. DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the following events or conditions: a. default in the payment or performance of any obligation, covenant or iiability contained or referred to herein or in any note evidencing the same; b. the making or furnishing of any warranty, representation or statement to SECURE~ PaRN by or on behalf of DEBTOR which proves to have been false in any material respect when made or furnished; Appendix 4 to Loan Contract C150068