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 and interet in and to any and all monies due, or which may become due,
as handling fees pursuant to an Agreement between the Assignor, Snyder-Smith Ditch
Company, and Pioner Water and Irrigation, Inc. ("Pioneer") recorded May 14, 1987
in the Office of theclerk and Recorder of Morgan C ty in Book 891 at Page 338
("1987 Agreement")' which is attached hereto andi ra rein (such monies
ll
hereinafter referred t as "handling fees"). This As II ke effect only if
and when the Assig or is considered in defa r the Lo tract as provided
below. This Assign ent is made solely to a 'J= ;; • the Loan"and is made
subject to the follow ng terms, covenants and cod , s,'t
1. This Assignment shell take effect only if and when the Assig considered in
default under the Loan Contract, and in that event the Assignment will remain in full
force and effect until the Assignee releases it in writing. In the event the Assignment
becomes effective, tlfie Assignee shall release this Assignment when the Loan is paid
in full.
2. The Assignor shall 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; (hi
default in the paym nt or performance of any obligation, covenant, or agreement
contained in the Loa 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 4nd an opportunity to cure within thirty (30) days of receipt of
such notice before i ssignor 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 in erest secured hereby, or in the performance of any obligation,
covenant or agreem t contained in the Loan Contract, this Assignment shall not take
effect and the Assig or shall retain the sole right to collect all handling fees.
4. Upon or at any ti e after default in the payment of the principal sum and interest
secured hereby, or n the performance of any obligation, covenant or, agreement
contained in the Lo:n Contract, the Assignee, without in any way waiving such
default, may; upon n•tice in writing to Pioneer and the Assignor; demand, collect and
receive all handling f-es from Pioneer to the extent required to satisfy the Assignor's
obligations under th: 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