Laserfiche WebLink
ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY <br />In consideration of and as security for a loan from the Colorado Water Conservation Board <br />("Secured Party") to the Excelsior Irrigating Company ("Debtor") in the amount of $251,125 <br />("Loan") pursuant to Contract Encumbrance Number C153797, as amended, ("Loan <br />Contract"), Debtor hereby assigns, transfers and grants to Secured Parly a security interest <br />in the funds contained in Deposit Account No. (the "Account") at <br />("Bank"), hereinafter referred to as the Collateral. Debtor warrants that the Account has <br />been established as a special deposit with the funds deposited therein to be used solely for <br />repayment of the Loan to Secured Party. <br />The Collateral secures the payment and performance of all of Debtor's present and <br />future, direct or indirect, absolute and contingent, express and implied, indebtedness, <br />liabilities, obligations and covenants (cumulatively "Obligations") under the Loan Contract <br />described above and any amendments thereto. This Assignment is made solely to secure <br />performance of the Obligations and is made subject to the following terms, covenants and <br />conditions: <br />1. This Assignment is effective upon signing and will remain in full force and effect until <br />Secured Party specifically terminates the security interest in the Collateral in writing. <br />Secured Party is not required to release this Assignment until the Loan is paid in full. <br />2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw any <br />funds from the account listed above until the Secured Party releases this Assignment in <br />writing, except that, at Debtor's request, the Bank shall allow the transfer of the annual <br />Loan payment to Secured Party. <br />3. Debtor shall be in default under the Loan Contract for purposes of this Assignment upon <br />the occurrence of any of the following events or conditions: (a) failure or omission to <br />make any payment under the Loan Contract when due; (b) defauft in the payment or <br />performance of any obligation, covenant, agreement or liability contained or referred to in <br />the Loan Contract; (c) the making of any levy, seizure, or attachment on the Collateral; (d) <br />the Debtor becoming insolvent or unable to pay debts as they mature. Secured Party <br />shall give the Debtor written notice of any alleged default and an opportunity to cure <br />within thirty (30) days of reeeipt of such notice before Debtor shall be considered in <br />default for purposes of this Assignment. <br />4. Upon or at any time after a default under the Loan Contract as described in Paragraph 3 <br />above, Secured Party shall be entitled to notify the Bank to pay Secured Parly the funds <br />contained in the Account. Secured Party shall apply such moneys first to costs <br />associated with collection, including, but not limited to, reasonable attorney's fees, next to <br />outstanding interest, and then to the principal sum of the Loan. <br />- b. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or <br />any interest therein as long as this Assignment is in effect. <br />6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under <br />this Assignment must be contained in a writing signed by Secured Party. A waiver on one <br />occasion shall not constitute a waiver on any other occasion. <br />Attachment 7 to Contract C153797 Amendment No. 1 <br />