C153726 Paid in Full Contract

• Contract/PO #: C153726
• Contractor Name: Tremont Mutual Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

CONDITIONAL ASSIGNMENT OF CONTRACT PROCEEDS
In consideration of and as security for reimbursement for monies owing under
a loan from the Colorado Water Conservation Board ("Assignee") in the amount of
$45,000 ("Loan") pursuant to Contract Encumbrance Number C153726, ("Loan
Contract"), the Tremont Mutual Ditch Company ("Assignor") hereby conditionally
assigns and transfers to the Assignee, for its use and benefit, all of the Assignor's.
right, title i e t d to any and all monies due, or which may become due,
as handlin t an Agreement between the Assignor, Snyder-Smith Ditch
Company, i ear Water and Irrigation, Inc. ("Pioneer") recorded May 14, 1987
in the Office of ' = ! - n• +'ecorder of Morgan County in Book 891 at Page 338
("198 m• - ., ached hereto and incorporated herein (such monies
herein, fe t• =s andling fees"). This Assignment shall take effect only if
and when the Assignor is considered in default under the Loan Contract as provided
below. This Assignment is made solely to secure payment of the Loan and is made
subject to the following terms, covenants and conditions:
1. This Assignment shall,take effect only if and when the Assignor is considered in •
default under the Loan Contract, and in that event the Assignment will i'e(main in full
force and effect until the Assignee releases it in writing. In the event the Assignment
becomes effective, the Assignee shall release this Assignment when the Loan is paid
in full.
2. The Assignor shad be considered 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, or,agreement
contained in the Loan Contract; (c) the making of any levy, seizure, or attachment on
the handling fees by any third party; (d) the Assignor becoming insolvent or unable
to pay debts as they mature. The Assignee shall give the Assignor written notice of
any alleged default and an opportunity to cure within thirty (30) days of receipt of
such notice before Assignor shall be considered in default for purposes of this
Assignment.
3. So long as there shall exist no default by the Assignor in the payment of the
principal sum and interest secured hereby, or in the performance of any!obligation,
covenant or agreement contained in the Loan Contract, this Assignment shall not take
effect and the Assignor shall retain the sole right to collect all handling fees.
4. Upon or at any time after default in the payment of the principal sum end interest
secured hereby, or in the performance of any obligation, covenant or agreement
contained in the Loan Contract, the Assignee, without in any way waiving such
default, may; upon notice in writing to Pioneer and the Assignor, demand, collect and
receive all handling fees from Pioneer to the extent required to satisfy the Assignor's
obligations under the loan contract. Upon receipt of such notice, the Assignor shall
notify Pioneer of the Assignee's exercise of this right. The Assignee shall apply such
APPENDIX C