PROJC02530

• Contract/PO #: C150281
• Contractor Name: Water Supply and Storage Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
�PLEDGE OF REVENUES�
DATE: MAY 15 2009
DEBTOR: THE WATER SUPPLY AND STORAGE COMPANY
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $843 DATED MAY 15, 2009
TERMS OF REPAYMENT: 3.70% PER ANNUM FOR 30 YEARS
LOAN CONTRACT: C15O2H1 , DATED MAY 15, 2009
Co��ATERa�: Revenues derived from assessments on stock and all of
Debtor's right to receive said assessment revenues to service
the loan as described in Pledge of Property provisions of the
LOAN CONTRACT and Debtor's Resolutions adopted July 1,
2009.
To secure payment of the loan evidenced by the PROnnissoRY NorE payable in accordance
Wltfl tlle TERMS OF REPAYMENT or until all principal, interest, and late charges, if any, are paid in
full, the DEBTOR grants to SECURED PARTY a security interest in the above described
COLLATERAL.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby and any other security interests
described in Section 5 of the Loan Contract Project Summary, DEBroR is the owner of the
Co��.aTERa� free from any adverse lien, security interest or encumbrances; and that DEBTOR
will defend the COLLATERAL against all claims and demands of all persons at any time
claiming the same or any interest therein.
2. That the execution and delivery of this agreement by DEeTOR will not violate any law or
agreement governing DEBTOR or to which DEaroR is a party.
3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon
the Co��,�,TERa,� and not to permit the same to be attached or replevined.
4. That by its acceptance of the loan money pursuant to the terms of the CoNTRa,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
tlle COLLATERAL.
6. That the DEBTOR's articles of incorporation and by-laws do not prohibit any term or condition
of this agreement.
UNTIL DEFAULT DEBTOR may have possession of the Co��aTERa�. Upon default,
SECUREO PARN shall have the immediate right to the possession of the Co��,�,TE�,�.
DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the
following events or conditions:
a. default in the payment or performance of any obligation contained herein or in the
Appendix 4 to Loan Contract C150281
Page 1 of 2