C150112 Paid in Full Documents

• Contract/PO #: C150112
• Contractor Name: The Kern Resevoir and Ditch company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES)
DATE: DECEMBER 1, 2002
DEBTOR: KERN RESERVOIR AND DITCH COMPANY
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
1313 SHERMAN STREET, ROOM 721
DENVER, CO 80203
PROMISSORY NOTE: $1,000,000, DATED DECEMBER 1, 2002
TERMS: REPAYMENT PERIOD OF 30 YEARS, INTEREST AT THE RATE OF 5.10%
PER ANNUM
LOAN CONTRACT: C150112, DATED DECEMBER 1, 2002
PLEDGED PROPERTY: All revenues derived from assessments on stock and all of
Debtor's right to receive said assessment revenues to repay the
loan as described in Pledge of Property provisions of the LOAN
CONTRACT.
To secure payment of the loan evidenced by the PROMISSORY NOTE payable in accordance
with the TERMS, 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 PLEDGED
PROPERTY.
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
PLEDGED PROPERTY free from any adverse lien, security interest or encumbrances; and that
DEBTOR will defend the PLEDGED PROPERTY 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 riot 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 PLEDGED PROPERTY 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 PLEDGED PROPERTY pursuant to the terms of
this agreement.
5. To pay all taxes and assessments of every nature which may be levied or assessed against
the PLEDGED PROPERTY.
6. That the DEBTOR'S articles of incorporation and by-laws do not prohibit any term or condition
of this agreement.
UNTIL DEFAULT DEBTOR may have possession of the PLEDGED PROPERTY, provided
that DEBTOR keeps the PLEDGED PROPERTY in an account separate from other revenues of
DEBTOR and does not use the PLEDGED PROPERTY for any purpose not permitted by the
CONTRACT. Upon default, SECURED PARTY shall have the immediate right to the possession of
the PLEDGED PROPERTY.
Appendix 4 to Loan Contract C150112