C150048 Paid in Full Contract

• Contract/PO #: C150048
• Contractor Name: Plumb and Dailey Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
DEBTOR: Plumb and Dailey Ditch Company
4239 WCR 22
Longmont, CO 80504
FEDERAL TAX NUMBER: 84-0293625
COUNTY: WELD(CODE: 03)
SECURED PARTY: State of Colorado - Colorado Wa °• 1 •f " '-1
1313 Sherman Street, Room 721
Denver, CO 80203
COLLATERAL: Contract Rights (Code: 030)
DEBTOR, for consideration, hereby grants to SECURED PARTY a security inter in t e following
property and any and all additions, accessions and substitutions thereto o' erefo hereinafter
called the COLLATERAL: All revenues derived from assessments on stock and all!of DEB OR'S right to
receive said assessment revenues to repay the indebtedness on the amour t N•aped o debtor by
secured party, as described in Pledge of Property provisions in Contract Nb. C1 10048 (i ONTRACT).
To secure payment of the indebtedness evidenced by the Promissory Note 1)etwe:•nthe .bove named
parties herewith, payable to the SECURED PARTY, the loan amount of $42;000 - an ins-rest rate of
3.75% per annum for a period of 20 years in accordance with said Promissory Not,- or un t 1 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 exten' that th agreement
states that the COLLATERAL is to be acquired after the date hereof, will b::, the •wner of the
COLLATERAL free from any adverse lien, security interest or encumbrances' -nd that DEBTOR will
defend the COLLATERAL against all claims and demands of all persons at anyti l- claim ng the same
or any interest therein.
2. That the execution and delivery of this agreement by DEBTOR will not violate a y •r agreement
governing DEBTOR or to which DEBTOR is a party.
3. That, if DEBTOR is a corporation, its certificate and articles of incorporation =nd 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 Cm RAC and-.i�i;'i "
representations herein, DEBTOR shall be estopped from asserting for .any r-a..on hat it is riot`._,
authorized to grant a security interest in the COLLATERAL pursuant to the terms • t is a.reerilent. -
5. To pay all taxes and assessments of every nature which may be levied or &:s:sse• against the
COLLATERAL.
6. To not permit or allow any adverse lien, security interest or encumbrance Ai soe er 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 a' tes regulations,
ordinances, articles of incorporation or by-laws.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, Dri vi•ed hat DEBTOR
keeps the COLLATERAL in an account separate from other revenues of DEBIOR and soe- not use the
COLLATERAL for any purpose not permitted by the CONTRACT. Upon default, SECURED PAR shall have
the immediate right to the possession of the COLLATERAL.
Appendix 4 to Loan Contract C150044