C150026 PIF Contract

• Contract/PO #: C150026
• Contractor Name: Ute Water Conservancy District
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
DEBTOR: Ute Water Activity Enterprise
P.O. Box 460
Grand Junction, CO 81502 -0460
FEDERAL TAx NUMBER: 84- 6013629
COUNTY: MESA
SECURED PARTY: State of Colorado - Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203
DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following property
and any and all additions, accessions and substitutions thereto or therefor, hereinafter called the
COLLATERAL: Water system revenues pledged to repay the indebtedness on the amount loaned to DEBTOR
by SECURED PARTY, as described in pledge of revenues provisions in contract No. C150026 (CONTRACT).
To secure payment of the indebtedness evidenced by the Promissory Note between the above named parties
in the total amount of $7,000,000.00 at an interest rate of 4.75% per annum for a term of 30 years, payable by
DEBTOR to the SECURED PARTY until all principal, interest, and late charges, if any, are paid in full in
accordance with said Promissory Note.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby, DEBTOR is; ors to he extent that this agreement
states that the COLLATERAL is to be acquired after the date -hei pf, W fF � , the owner of the Cou�ATERAL
free from any adverse lien, security interest or encumbrances: escceptywr"1oR'S Water Revenue
Refunding Bonds, Series 1995 and Series 1997 and existing Ioans`I at SE }RED PARTY; and that
DEBTOR will defend the COLLATERAL against all claims and dpmond'; Of OILj�drsons at anytime 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. That by its acceptance of the loan money pursuant to the terms of the CONTRACT 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.
4. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the
COLLATERAL and not to permit the same to be attached or replevined, without the prior written consent
Of SECURED PARTY.
5. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations,
ordinances, articles of incorporation or by -laws.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps the
COLLATERAL in an account separate from other revenues of DEBTOR and does not use the COLLATERAL for
any purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall have the immediate right
to the possession of the COLLATERAL.
DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the following
events or conditions:
a. default in the payment or performance of any obligation, covenant or liability contained or referred
to herein or in any note evidencing the same;
Appendix D to Loan Contract C150026