C153769 Paid in Full Contract

• Contract/PO #: C153769
• Contractor Name: Agricultural Ditch and Reservoir Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

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CONDITIONAL A SSIGNMENT OF CONTRACT PROCEEDS
In consideration of :nd as security for reimbursement for monde owing under a loan from
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the Colorado Water Co ervation Board ("Assignee") in the a int aof '"$3,0 000 ("Loan")
pursuant to Contact Enc mbrance Number C153769 ("Loan Conc# ) the Aigri4ultural Ditch
and Reservoir Company ('Assignor") hereby conditionally as:;:,t _,_ and trans erg�°t he Assignee,
for its use and benefit, al of the Assignor's right, title and ^, :'' • , alereholder of the
itiGolden Canal and Rese oir Company ("Golden"), in and • ,, ynd`' 14io�iie di ; or which
may become due, from t e sale by Golden of water carried primarily hrdiig1 ch Ditch
pursuant to Article 10 of Golden's bylaws (such monies hereinafter referred to as ''Assigned
Monies"). This Assignm:nt shall take effect only if and when the Assignor is considered in
default under the Loan C.ntract as provided below. This Assignment is made solely to secure
payment of the Loan and IL made subject to the following terms, covenants and conditions:
1. This Assignment shall' ,ake effect only if and when the Assignor is considered in default under
the Loan Contract an. in that event, the Assignment shall remain in full force and effect until
the Assignee release: it in writing. In the event the Assignment becomes effective, the
Assignee shall rel ase;` his Assignment when the Loan is paid in full.
2. The Assignor sh II b. considered in default under the Loan Contact for purposes of this
Assignment upon the ," ccurrence of any of the following events or conditions: (a) failure or
omission to make ny ;ayment under the Loan Contract when due; (i)default in the payment
or performance of any !•bligation, covenant, or agreement contained!in the Loan Contract; (c)
the making of any leve seizure, or attachment on the Assigned Monies by any third party; (d)
the Assignor bec ming insolvent or unable to pay debts as they mature. The Assignee shall
give the Assignor ri �•-n notice of any alleged default and an opportunity to cure within thirty
(30) days of recent of; 'uch notice before Assignor shall be considered in default for purposes
of this Assignmen .
3. So long as there hale exist no default by the Assignor in the payment of the(..princiOal,sum
and interest secured h reby, or in the performance of any obligations, covenant or agreement
contained in theoan! ' ontract, this Assignment shall not take effect and the Assignor shall
retain the sole rig t to' oollect all Assigned Monies.
4. Upon or at any ti e .. er default in the payment of the principal sum and interest secured
hereby, or in the per((rmance of any obligation, covenant or agr ement contained in the
Loan Contract, th AS•ignee, without in any way waiving such default, may, Upon notice in
writing to the Assign'•'r, demand, collect and receive all Assigned Monies to the extent
required to satisfy the I•ssignor's obligations under the loan contrat. Upon receipt of such
notice, the Assignor deliver, or cause the delivery of, the Assigned Monies to the
Assignee. The A sign!lhall
•e shall apply such monies first to costs associated with collection,
including reasona le : omey's fees, next to outstanding interest, and then to the principal
sum of the Loan. i
5. The rights and r mec -s of the Assignee stated in this Assignment are in addition to any
other rights the A sign•e may have under the Loan Contractor any law.
6. This Assignment halls •e construed in accordance with the laws of the State of Colorado.
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p i endix 6 to Loan Contract C1537 9
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