C150048 Paid in Full Contract

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

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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 Plumb and Dailey Ditch Company ("Debtor")
pursuant to Contract Encumbrance Number C150048, ("Loan Contract"), Debltor hereby
assigns, transfers and grants to Secured Party a security interest in the funds contained in
Deposit Account No. 18-3326 ("Account") at FIRST NATIONAL BANK OF IONGNOr(IBank"),
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 of all of Debtor's present and
future, direct or indirect, absolute and contingent, express and implied, ind?btedness,
liabilities, obligations and covenants (cumulatively "Obligations") under the Loap Contract
described above and any amendments thereto. This Assignment is made solely to secure
performance of the Obligations and is made subject to the following terme, covenants and
conditions:
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1. This Assignment is effective upon signing and will remain in full force and effect until
Secured Party specifically terminates the security interest in the Collateral n writing.
Secured Party is not required to release this Assignment until the Loa i is paid n full.
2. Neither the Debtor nor anyone else (except Secured Party) has any r ght to wi:hdraw 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 fundsifrom 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) defaul in the payment or
performance of any obligation, covenant, agreement or liability cohtai led or referred to in
the Loan Contract; (c) the making of any levy, seizure, or attachment !or the Collateral;
(d) the Debtor becoming insolvent or unable to pay debts as th- ma,ure. Secured Party
shall give the Debtor written notice of any alleged default w i F - • :•1: °, ity to cure
within thirty (30) days of receipt of such notice before De. :r ' II '1 ., i •idered in
default for purposes of this Assignment.
4. Upon or at any time after a default under the Loan Co =, .1"`,1 • it `�. ' - ±raph 3
above, Secured Party shall be entitled to notify the Ban • y.. ; e i f': e funds
contained in the Account. Secured Party shall apply such ,mo . ' 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 aum of the
Loan. j
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5. Debtor shall not sell, transfer, assign, give, or otherwise dispose!of at* 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 Secired Party's nghts under
this Assignment must be contained in a writing signed by Secured '4rty. A waiver on
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Appendix 5 to Loan Contract Cl 50048 '
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