C150044 Paid in Full Contract

• Contract/PO #: C150044
• Contractor Name: Riverside Reservoir & Land Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

• 9
ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY
In consideration of and as security for a loan ("Loan") from the Colorado Water
Conservation Board ("Secured Party") to the Riverside Reservoir and Land Company
("Debtor") pursuant to Contract Encumbrance Number C150044, ("Loan Contract"),
Debtor hereby assigns, transfers and grants to Secured Party a security interest in the
funds contained in Deposit Account No. 1903463 ("Account") at Farmers State
Bank of Fort Morgan ("Bank"), hereinafter referred to as the Collateral. Debtor warrants
that the Account has been established as a special deposit with the funds deposited
therein to be used solely for repayment of the Loan to Secured Party.
The Collateral secures the payment and performance • all of Debtor's present
and future, direct or indirect, absolute and contingent, express - '0 lir i, indebtedness,
liabilities, obligations and covenants (cumulatively "Obligations" .'f: tr;. Contract
described above and any amendments thereto. This Ass: 7 ent is to secure
performance of the Obligations and is made subject to t,, '• „! i rms, c enants and
conditions: , ,
R
1. This Assignment is effective upon signing and will remain in full r - '' n•;:ffect until
Secured Party specifically terminates the security interest in the Colla . 4 riting.
Secured Party is not required to release this Assignment until the Loan is paid in full.
2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw
any funds from the Account until the Secured Party releases this Assignment in
writing, except that, at Debtor's request, the Bank shall allow transfers of funds from
the Account to the Secured Party.
3. Debtor shall be in default under the Loan Contract for purposes of 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 Debtor becoming insolvent or unable to pay debts as they
mature. Secured Party shall give the Debtor written notice of any alleged default and
an opportunity to cure within thirty (30) days of receipt of such notice before Debtor
shall be considered in default for purposes of this Assignment.
4. Upon or at any time after a default under the Loan Contract as described in Paragraph
3 above, Secured Party shall be entitled to notify the Bank to pay Secured Party the
funds contained in the Account. Secured Party shall apply such moneys first to costs
associated with collection, including, but not limited to, reasonable attorney's fees,
next to late charges, if any, then to outstanding interest, and then to the principal sum
of the Loan.
5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the
Collateral or any interest therein as long as this Assignment is in effect.
6. The modification or waiver of any of Debtor's obligations or Secured Party's rights
under this Assignment must be contained in a writing signed by Secured Party. A
waiver on one occasion shall not constitute a waiver on any other occasion.
Appendix 6 to Loan Contract C150044