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• • <br /> SECURITY AGREEMENT <br /> (PLEDGE OF REVENUES) <br /> DATE: MAY 1, 2005 <br /> DEBTOR: Central Weld County Water District, acting by and through <br /> its Water Activity Enterprise <br /> SECURED PARTY: COLORADO WATER CONSERVATION BOARD <br /> 1313 SHERMAN STREET, ROOM 721 <br /> DENVER, CO 80203 <br /> PROMISSORY NOTE: $3,937,500, DATED MAY 1, 2005 <br /> TERMS OF REPAYMENT: 4.15% PER ANNUM FOR 20 YEARS <br /> LOAN CONTRACT: C150122, DATED MAY 1, 2005 <br /> COLLATERAL: All revenues pledged to repay the loan as described in <br /> Pledge of Revenues provisions of the LOAN CONTRACT, and <br /> as described in the Resolution of the Board of Directors of <br /> the Central Weld County Water District acting by and <br /> through its Water Activity Enterprise, dated April 21, 2005 <br /> (attached as LOAN CONTRACT Appendix 3). <br /> To secure payment of the loan evidenced by the PROMISSORY NOTE payable in <br /> accordance with the TERMS OF REPAYMENT, or until all principal, interest, and late <br /> charges, if any, are paid in full, the DEBTOR grants to SECURED PARTY a security interest in <br /> the above described COLLATERAL. <br /> DEBTOR EXPRESSLY WARRANTS AND COVENANTS: <br /> 1. That except for the security interest granted hereby and any other security interests <br /> described in Section 5 of the Loan Contract Project Summary, DEBTOR is the owner of <br /> the COLLATERAL free from any adverse lien, security interest or encumbrances; and <br /> that DEBTOR will defend the COLLATERAL against all claims and demands of all persons <br /> at any time claiming the same or any interest therein. <br /> 2. That the execution and delivery of this agreement by DEB will not violate any law or <br /> agreement governing DEBTOR or to which DEBTOR is a p <br /> 3. To coot permit or allow any adverse lien, security intere r <_ • whatsoever <br /> upon the COLLATERAL and not to permit the same - - ache. Jr ed. <br /> 4. That by its acceptance of the loan money purs = e •f the CONTRACT and <br /> by its representations herein, DEBTOR shall be estopp d - ny reason <br /> that it is not authorized to grant a security interest in the OL L suant to the <br /> terms of this agreement. <br /> UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that <br /> DEBTOR keeps the COLLATERAL in an account separate from other revenues of DEBTOR <br /> and does not use the COLLATERAL for any purpose not permitted by the CONTRACT. Upon <br /> default, SECURED PARTY shall have the immediate right to the possession of the <br /> Appendix 4 to Loan Contract C150122 <br /> Page 1 of 2 <br />