C150058A PIF Contract - Laserfiche WebLink

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ASSIGNMENT OF INVESTMENT FUND AND INTEREST In consideration of and as security for a loan ("Loan") from the Colorado Water Conservation Board ("Secured Party") to The Dolores Water Conservancy District, acting by and through the Dolores Water Conservancy District Water Activity Enterprise ("Debtor") pursuant to Contract Encumbrance Number C150058 dated December 10, 2002 ("Loan Contract"), Debtor hereby assigns, transfers and grants to Secured Party a security interest in the fund established by the Investment Agreement between Debtor and MBIA Inc. dated December 6, 2002, and the interest earned thereon, hereinafter referred to as the Fund. Said Investment Agreement is incorporated herein by reference. Debtor warrants that the Fund has been established as a special deposit to be used solely for repayment of the Loan to Secured Parly. The Fund secures the payment and performance of all of Debtor's present and future, direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, obligations and covenants (cumulatively "Obligations") under the Loan Contract described above and any amendments thereto. This Assignment is made solely to secure perFormance of the Obligations and is made subject to the following terms, covenants and conditions: 1. This Assignment is effective upon signing and will r ain in full force and effect until Secured Party specifically terminates the secu t e i t Fund in writing. Secured Party shall release this Assignment when the Loan~ . 2. Neither the Debtor nor anyone else (e cx ept Pa ) as any right to withdraw any funds from the Fund until the Sec e~ ignment in writing, except that, at Debtor's request, MBIA Inc. sha a tr fers of funds from the Fund to the Secured 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, or attachment on the Fund; (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 before 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 Fund. Secured Party shall apply such moneys first to costs associated with collection, including, but not limited to, reasonable attorney's fees, next to late charges, if any, tnen to outstanding interest, and ther~ to the principai surr~ of the Loan. 5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Fund or any interest thereon as long as this Assignment is in effect. 6. The modification or waiver of any of Debtor's obligations or Secured Party'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 occasion. 7. The rights and remedies of the Secured Party stated in this Assignment are in addition to any other rights the Secured Party may have under the Loan Contract or any law. Appendix 5 to Loan Contract No. C150058