C150049 Contract

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

SECURITY AGREEMENT
DEBTOR: Peoples Ditch Company
23738 Road 40
Sterling, CO 80751
FEDERAL TAX NUMBER: 84-1231597
COUNTY: LOGAN (CODE: 13)
SECURED PARTY: State of Colorado- Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203
COLLATERAL: Contract Rights (Code: 030)
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: All revenues derived from assessments on stock and all of DEBTOR'S right to
receive said assessment revenues to repay the indebtedness on the amount loaned to debtor by
secured party, as described in Pledge of Property provisions in Contract No. C150049 dtaed
February 1, 2002 (CONTRACT).
To secure payment of the indebtedness evidenced by the Promissory Note between the above named
parties herewith, payable to the SECURED PARTY, the loan amount of $43,000 at an interest rate of
3.75% per annum for a period of 20 years in accordance with said Promissory Note or until all principal
and interest are paid in full.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That-except for the security interest granted hereby, DEBTOR is, or to the extent that this agreement
states that the COLLATERAL is to be acquired after the date hereof, will be, the owner of the
COLLATERAL free from any adverse lien, security interest or encumbrances; and that DEBTOR will
defend the COLLATERAL against all claims and demands of all persons at anytime claiming the same
or any interest therein. r
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, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not
prohibit any term or condition of this agreement.
4. 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.
5. To pay all taxes and assessments of every nature which may be levied or assessed against the
COLLATERAL.
6. 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.
7. 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.
Appendix 4 to Loan Contract C150049