CT2017-916 Contract

• Contract/PO #: CT2017-916
• Contractor Name: Grand Junction, City of
• Contract Type: Grant/Loan Combo
• Water District: 4
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
DATE: JULY 18, 2016
BORROWER: CITY OF GRAND JUNCTION,ACTING BY AND THROUGH ITS WATER ACTIVITY
ENTERPRISE
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $1,010,000.00
TERMS OF REPAYMENT: 2.65%INTEREST FOR 20 YEARS
LOAN CONTRACT NUMBER: CT2017-916
PLEDGED REVENUES: THE PLEDGED REVENUES DESCRIBED IN THE LOAN ORDINANCE ATTACHED
AS APPENDIX 4 TO THE LOAN CONTRACT. CAPITALIZED TERMS USED HEREIN AND NOT OTHERWISE DEFINED HAVE
THE MEANINGS SET FORTH IN THE LOAN ORDINANCE AND THE LOAN CONTRACT.
To secure payment of the loan evidenced by the PROMISSORY NOTE payable in accordance with
the TERMS OF REPAYMENT, or until all principal, interest, and late charges, if any, are paid in full,
the BORROWER grants to SECURED PARTY a security interest in the above described Pledged
Revenues hereinafter "COLLATERAL". Such security interest in the Pledged Revenues is on a parity
with any Parity Indebtedness.
BORROWER EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby and any other security interests described
in Section 5 of the LOAN CONTRACT PROJECT SUMMARY, the BORROWER is the owner of the
COLLATERAL free from any adverse lien, security interest or encumbrances; and that the
BORROWER will defend the COLLATERAL against all claims and demands of all persons at any
time claiming the same or any interest therein.
2. That the execution and delivery of this agreement by the BORROWER will not violate any law or
agreement governing the BORROWER or to which the BORROWER is a party.
3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon
the COLLATERAL and not to permit the same to be attached or replevined.
4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its
representations herein, the BORROWER shall be estopped from asserting for any reason that it
is not authorized to grant a security interest in the COLLATERAL pursuant to the terms of this
agreement.
BORROWER SHALL BE IN DEFAULT under this agreement upon any of the following
events or conditions:
a. default in the payment or performance of any obligation contained herein or in the
PROMISSORY NOTE or Loan CONTRACT;
b. dissolution, termination of existence, insolvency, business failure, appointment of a
receiver of any part of the property of, assignment for the benefit of creditors by, or the
commencement of any proceeding under any bankruptcy or insolvency law of, by or
against the BORROWER; or
c. the making or furnishing of any warranty, representation or statement to SECURED PARTY
by or on behalf of the BORROWER which proves to have been false in any material
respect when made or furnished.
Appendix 5
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