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277624 <br />Thu Apr 04 13:52:41 MDT 2013 B: 436 P: 0303 <br />Karen Garcia Costilla County Recorder Page 1 of 3 <br />DT Rec Fee: 21.00 DocFee: $0.00 <br />mill Iii 1111 1114(1 1011101 ail IMFIIW61N M Mh 11111 <br />Deed of Trust <br />DATE: February 18, 2013 <br />GRANTOR: Sanchez Ditch and Reservoir Company <br />A Colorado nonprofit corporation <br />BENEFICIARY: Colorado Water Conservation Board <br />COUNTY: Costilla <br />PRINCIPAL LOAN AMOUNT: $1,128,776 <br />LOAN CONTRACT: LOAN CONTRACT No. C150342 <br />TERMS OF REPAYMENT: 30 years at 1.75% per annum, the first 5 years of which are interest only. Principal <br />and interest would be paid over the remaining 25 years. <br />COLLATERAL: An undivided one - hundred percent interest in and to the Sanchez Dam and <br />Reservoir and all appurtenant structures thereto, including all lands underlying <br />these facilities, as described as follows: the land underlying and included within the <br />high water line of the Sanchez Reservoir located south and west of the town of <br />San Luis at Latitude 37- 06'48" N and Longitude 105 - 24'38" W. Also, the necessary <br />rights of ingress and egress therefor, as contained in the deeds of the owners of <br />lands bordering on said reservoir, together with all easements and rights -of way <br />appurtenant thereto and all improvements thereon, including the dam, reservoir, <br />measuring devices, spillway, outlet works and all other physical and legal features <br />known as Sanchez Reservoir, collectively. <br />This indenture is between the Grantor, and the Public Trustee of the above referenced COUNTY, State of <br />Colorado ( "PUBLIC TRUSTEE "), <br />FACTUAL RECITALS <br />1. The GRANTOR has executed a PROMISSORY NOTE of even date and amount, set forth in the LOAN <br />CONTRACT, for a loan in the PRINCIPAL LOAN AMOUNT to be repaid to the BENEFICIARY, with TERMS OF <br />REPAYMENT and in accordance with the PROMISSORY NOTE or until loan is paid in full. <br />2. The GRANTOR is desirous of securing payment of the PRINCIPAL LOAN AMOUNT and interest of said <br />PROMISSORY NOTE to the BENEFICIARY. <br />The GRANTOR, in consideration of the premises and for the purpose aforesaid, does hereby grant, <br />bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, the above described COLLATERAL. <br />To have and to hold the same, together with all appurtenances, in trust nevertheless, that in case of <br />default in the payment of said PROMISSORY NOTE, or any part thereof, or the interest thereon, or in the <br />performance of any covenants hereinafter set forth or in said PROMISSORY NOTE or LOAN CONTRACT, then <br />upon the BENEFICIARY filing notice of election and demand for sale, said PUBLIC TRUSTEE, after advertising <br />notice of said sale weekly for not less than four weeks in some newspaper of general circulation in said <br />COUNTY, shall sell said COLLATERAL in the manner provided by law in effect at the time of filing said notice <br />and demand, at public auction for cash, at any proper place designated in the notice of sale. Out of the <br />proceeds of said sale, the PUBLIC TRUSTEE shall retain or pay first all fees, charges and costs and all moneys <br />advanced for taxes, insurance and assessments, or on any prior encumbrance, with interest thereon and <br />pay the principal and interest due on said PROMISSORY NOTE, rendering the over plus, if any, unto the <br />GRANTOR; and after the expiration of the time of redemption, the PUBLIC TRUSTEE shall execute and deliver to <br />the purchaser a deed to the COLLATERAL sold. The BENEFICIARY may purchase said COLLATERAL or any part <br />thereof at such sale. <br />Appendix 5 to Loan Contract C150342 <br />Page 1 of 3 <br />