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0 i <br /> ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY <br /> In consideration of and as security for a loan from the Colorado Water Conservation Board <br /> ("Secured Party") to the Excelsior irrigating Company ("Debtor") in the amount of $251,125 <br /> ("Loan") pursuant to Contract Encumbrance Number C153797, as amended, ("Loan <br /> Contract"), Debtor hereby assigns, transfers and grants to Secured Party a security interest <br /> in the funds contained in Deposit Account No. (the "Account") at <br /> ("Bank"), hereinafter referred to as the Collateral. Debtor warrants that the Account has <br /> been established as a special deposit with the funds deposited therein to be used solely for <br /> repayment of the Loan to Secured Party. <br /> The Collateral secures the payment and performance of all of Debtor's present and <br /> future, direct or indirect, absolute and contingent, express and implied, indebtedness, <br /> liabilities, obligations and covenants (cumulatively "Obligations") under the Loan Contract <br /> described above and any amendments thereto. This Assignment is made solely to secure <br /> performance of the Obligations and is made subject to the following terms, covenants and <br /> conditions: <br /> 1. This Assignment is effective upon signing and will remain in full force and effect until <br /> Secured Party specifically terminates the security interest in the Collateral in writing. <br /> Secured Party is not required to release this Assignment until the Loan is paid in full. <br /> 2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw any <br /> funds from the account listed above until the Secured Party releases this Assignment in <br /> writing, except that, at Debtor's request, the Bank shall allow the transfer of the annual <br /> Loan payment to Secured Party. <br /> 3. Debtor shall,J- .n'.ef' ul u ,er the Loan Contract for purposes of this Assignment upon <br /> the occurren - •it::. l'Olt - following events or conditions: (a) failure or omission to <br /> make any p A din' • •er the Loin Contract when due; (b) default in the payment or <br /> performance of any o. .1at <br /> • , c enant, agreement or liability contained or referred to in <br /> the Loa W t ct•tt�.- ',ing ' f any levy, seizure, or attachment on the Collateral; (d) <br /> the Deb ' � mi - defror unable to pay debts as they mature. Secured Party <br /> shall givaltiFts bebtor written notice of any alleged default and an opportunity to cure <br /> within thirty (30) days of receipt of such notice before Debtor shall be considered in <br /> default for purposes of this Assignment. <br /> 4. Upon or at any time after a default under the Loan Contract as described in Paragraph 3 <br /> above, Secured Party shall be entitled to notify the Bank to pay Secured Party the funds <br /> contained in the Account. Secured Party shall apply such moneys first to costs <br /> associated with collection, including, but not limited to, reasonable attorney's fees, next to <br /> outstanding interest, and then to the principal sum of the Loan. <br /> 5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or <br /> any interest therein as long as this Assignment is in effect. <br /> 6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under <br /> this Assignment must be contained in a writing signed by Secured Party. A waiver on one <br /> occasion shall not constitute a waiver on any other occasion. <br /> Attachment 7 to Contract C153797 Amendment No. 1 <br />