C150049 Contract

• Contract/PO #: C150049
• Contractor Name: People's Ditch Company
• Contract Type: Loan
• County: Logan
• Loan Projects - Doc Type: Contract Documents

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RECEIVED
ASSIGNMENT OF CERTIFICATE OF DEPOSIT tiAR 6 2002
In consideration of and as security for reimbursement for monies owing +` ' '-'' f"Efi°8Riard
the Colorado Water Conservation Board ("Lender") to the Peoples Ditch Company ("Owner")
in the amount of up to $43,000 ("Loan") pursuant to Contract Encumbrance Number
C150049, ("Loan Contract"), Owner hereby assigns to the Lender Certificate of Deposit No.
669óZ-.O in the amount of $3,094.37 ("Collateral"), issued by Wells Fargo
Bank, Sterling, Colorado ("Bank"). Owner warrants that said Certificate of Deposit Account
has been established as a special deposit with the funds deposited therein to be used solely
to secure repayment of the Loan to Lender.
The Collateral secures the payment and performance of all of Owner's present and future,
direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities,
obligations and covenants (cumulatively "Obligations") by Lender pursuant to- the Loan
Contract described above and any amendments thereto. This Assignment is made solely to
secure performance of the Obligations and is made subject to the following terms, covenants
and conditions:
1. Owner shall deliver the original Certificate of Deposit to Lender upon the execution of this
Assignment. This Assignment shall continue until Lender specifically terminates the
security interest in the Collateral in a writing signed by Lender.
2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under
the Certificate of Deposit in the event of a default under the Obligations. The Lender
shall apply such monies first to costs associated with collection, including reasonable
attorney's fees, next to outstanding interest, and then to the principal sum of the Loan. In -
the event that Owner possesses or receives, possession of any instruments or other
remittances with respect to the Certificate of Deposit following the giving of such
notification, Owner shall hold such instruments and other remittances in trust for Lender
apart from Owner's other property, endorse the instruments and other remittances to
Lender, and immediately provide Lender with possession of the instruments and other
remittances.
3. The Owner shall be in default under this Assignment upon the occurrence of any of the
following events or conditions: (a) failure or omission to make any payment under the
Loan Contract when due; (b) default in the payment or performance of any obligation,
covenant, agreement or liability contained or referred to in the Loan Contract; (c) the
making of any levy, seizure, or attachment on the Collateral; (d) the Owner becoming
insolvent or unable to 'pay debts as they mature. The Lender shall give the Owner
written notice of any alleged default and an opportunity to cure within thirty (30) days of
receipt of such notice before the BORROWER shall be considered in default for purposes
of this Assignment.
4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on all
instruments and other remittances payable to Owner with respect to the Certificate of
Deposit. This power of attorney is coupled with an interest and is irrevocable.
5. The modification or waiver of any of Owner's obligations or Lender's rights under this
Assignment must be contained in a writing signed by Lender. A waiver on one occasion
shall not constitute a waiver on any other occasion:
Appendix 3 to Loan Contract C150049