C150271 contract docs

• Contract/PO #: C150271
• Contractor Name: WRCC, Inc.
• Contract Type: Loan
• Water District: 0
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES�
DATE: October 31, 2008
DEBTOR: WRCC, INC.
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $1,285,730, DATED OCtOb@I' 31, 2008
TERMS OF REPAYMENT: 2.55% PER ANNUM FOR 30 YEARS
LOAN CONTRACT C150271 DATED OCtObel' 31, 2008
Co��.aTEfta�: All revenues derived from assessments on stock and all of
Debtor's right to receive said assessment revenues to repay
the loan.
To secure payment of the loan evidenced by the PROnnissoRY NoTE payable in accordance
Wlth tI1@ 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, DEaTOR is the owner of the
Co�u�TE� free from any adverse lien, security interest or encumbrances; and that DEeroR
will defend the Co��aTERa� 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 DEBTOR will not violate any law or
agreement governing DEBTOR or to which DEBTOR is a party.
3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon
the Co��aTEw�� 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 CorvTRa,cT and by its
representations herein, DEBTOR shall be estopped from asserting for any reason that it is not
authorized tq grant a security interest in the Co��TERa� pursuant to the terms of this
agreement.
5. To pay all taxes and assessments of every nature which may be levied or assessed against
th2 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 COLLATERAL provided that
DEBTOR keeps the Co�u�TE�� in an account separate from other revenues of DEBTOR and
does not use the Co��arERa� for any purpose not permitted by the CorvTRa,cT. Upon default,
SECURE� PaRnr shall have the immediate right to the possession of the Cou.aTEw��.
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 ta Loan Contract C150271
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