C150266 contract docs

• Contract/PO #: C150266
• Contractor Name: Granby Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 40
• County: Delta
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES)
DATE: AUGUST 12, 2008
DEBTOR: GRANBY DITCH AND RESERVOIR COMPANY
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $254,520, DATED AUGUST 12, 2008
TERMS OF REPAYMENT: 2.35% PER ANNUM FOR 30 YEARS
LOAN CONTRACT: C150266, DATED AUGUST 12, 2008
Co��aTERa�: All revenues derived from assessments on stock and all of
Debtor's right to receive said assessment revenues to repay
the loan as described in Pledge of Property provisions of the
LOAN CONTRACT and Debtor's Resolutions adopted
, � , 2008.
To secure paymerrt of the loan evidenced by the PROMissoRY NoTE payable in accordance
Wlth th6 TERMS OF REPAYMENT or until all principal, interest, and late charges, if any, are paid in
full, the DEBTOR grarrts 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, DEBTOR is the ov►mer of the
Co�wTeRa� free from any adverse lien, security interest or encumbrances; and that DEaTOR
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 wifl not violate any law or
agreement goveming DEeTOR or to which DEBTOR is a party.
3. To not permit or allow any adverse lien, security interest or encumbrance whafsoever upon
the Co��arERA� 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 CoNTw�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 Cou.aTERa� pursuant to the terms of this
agreement.
5. To pay all taxes and assessments of every nature which may be levied or assessed against
th@ COLLATERAL.
6. That the DEBTOR's articles of incorporatian and by-laws do not prohibit any term or condition
of this agreement.
UNTfL �EFAULT DEeTOR may have possession of the COLLATERAL provided that
DEBTOR keeps the Co�u�rERA� in an account separate from other revenues of DEBTOR and
does not use the Co��TER�� for any purpose not permitted by the CoNTRacr. Upon default,
SECURE� PaRrY shall have the immediate right to the possession of the Co�v�rERA�.
Appendix 4 to Loan Contract C150266
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