C150153 Paid in Full Contract

• Contract/PO #: C150153
• Contractor Name: Dolores Water Conservancy District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES)
DATE: MARCH 1, 2004
DEBTOR: The Dolores Water Conservancy District, acting by and through
the Dolores Water Conservancy District Water Activity
Enterprise
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $598,058, DATED MARCH 1, 2004
TERMS OF REPAYMENT: 3% PER ANNUM FOR 10 YEARS
LOAN CONTRACT: C150153, DATED MARCH 1, 2004
I ,L . ERAL: All revenues pledged to repay the loan as described in
, F " Y Pledge of Revenues provisions of the LOAN CONTRACT, and
‘ti-rilt - .
as described in Debtor's Resolutions No. 04-01 (Enterprise)
.....N.
7 and 04-02 (District) dated March 4, 2004, including
Trs- ' ,revenues from the District's Water Activity Enterprise,
--. ` "k c L which shall include the Dove Creek Secondary Water
Supply System tap fees and operations revenues, as well
as any other Water Activity Enterprise revenues necessary
to assure payment of the annual debt service and debt
service reserve deposit.
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 DEBTOR grants to SECURED PARTY a security interest in the above described
COLLATERAL.
DEBTOR 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, DEBTOR is the owner of the
COLLATERAL free from any adverse lien, security interest or encumbrances; and that
DEBTOR 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 DEBTOR will not violate any law or
agreement governing DEBTOR or to which DEBTOR 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, DEBTOR 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.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that
DEBTOR keeps the COLLATERAL in an account separate from other revenues of DEBTOR and
does not use the COLLATERAL for any purpose not permitted by the CONTRACT. Upon default,
SECURED PARTY shall have the immediate right to the possession of the COLLATERAL.
Appendix 4 to Loan Contract C150153