Laserfiche WebLink
SECURITY AGREEMENT <br /> (PLEDGE OF ASSESSMENT REVENUES) <br /> DATE: APRIL 14, 2015 <br /> DEBTOR: CITY OF CORTEZ,A HOME RULE MUNICIPALITY ACTING BY AND <br /> THROUGH ITS CITY OF CORTEZ WATER ENTERPRISE <br /> SECURED PARTY: COLORADO WATER CONSERVATION BOARD <br /> PROMISSORY NOTE: $858,500 <br /> TERMS OF REPAYMENT: 2.10% PER ANNUM FOR 10 YEARS <br /> CONTRACT NUMBER: CT2015-152 <br /> COLLATERAL: The Pledged Revenues, as such term is defined in the PLEDGE OF <br /> REVENUE provisions of the LOAN CONTRACT and DEBTOR'S Loan <br /> Resolution adopted by the Debtor on APRIL 14, 2015. <br /> To secure payment of the loan evidenced by the PROMISSORY NOTE payable in accordance with <br /> the TERMS OF REPAYMENT, or until all principal, interest, and late charges, if any, are paid in full, <br /> the DEBTOR grants to SECURED PARTY a security interest in the above described Pledged <br /> Revenue hereinafter"COLLATERAL". <br /> DEBTOR EXPRESSLY WARRANTS AND COVENANTS: <br /> 1. That except for the security interest granted hereby and any other security interests described <br /> in Section 5 of the LOAN CONTRACT PROJECT SUMMARY, DEBTOR is the owner of the <br /> COLLATERAL free from any adverse lien, security interest or encumbrances; and that DEBTOR <br /> will defend the COLLATERAL against all claims and demands of all persons at any time claiming <br /> the same or any interest therein. <br /> 2. That the execution and delivery of this agreement by DEBTOR will not violate any law or <br /> agreement governing DEBTOR or to which DEBTOR is a party. <br /> 3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon <br /> the COLLATERAL and not to permit the same to be attached or replevined. <br /> 4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its <br /> representations herein, DEBTOR shall be estopped from asserting for any reason that it is not <br /> authorized to grant a security interest in the COLLATERAL pursuant to the terms of this <br /> agreement. <br /> UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps <br /> the COLLATERAL in an account separate from other revenues of DEBTOR and does not use the <br /> COLLATERAL for any purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall <br /> have the immediate right to the possession of the COLLATERAL. <br /> DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the following events <br /> or conditions: <br /> a. default in the payment or performance of any obligation contained herein or in the <br /> PROMISSORY NOTE or Loan CONTRACT; <br /> b. dissolution, termination of existence, insolvency, business failure, appointment of a <br /> receiver of any part of the property of, assignment for the benefit of creditors by, or the <br /> commencement of any proceeding under any bankruptcy or insolvency law of, by or <br /> Appendix 4 <br /> Page 1 of 2 <br />