C150062 Paid in Full Documents

• Contract/PO #: C150062
• Contractor Name: Town of Monument
• Contract Type: Loan
• Loan Projects - Doc Type: Repayment Information

SECURITY AGREEMENT
DEBTOR: Town of Monument, Colorado, acting by and through the Town of
Monument, Colorado, Water Enterprise
P.O. Box 325
166 2nd Street
Monument, CO 80132
FEDERAL TAX NUMBER: 84-6007781
COUNTY: EL PASO(CODE: 04)
SECURED PARTY: State of Colorado - Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203
COLLATERAL: Contract Rights (Code: 030)
DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following
property and any and all additions, accessions and substitutions thereto or therefor,
hereinafter called the COLLATERAL: All revenues derived from water system revenues and all
of DEBTOR'S right to receive said revenues to repay the indebtedness on the amount loaned to
debtor by secured party, as described in Pledge of Revenues provisions in Contract No.
C150062 dated March 1, 2002 (CONTRACT).
To secure payment of the indebtedness evidenced by the Promissory Note between the above
named parties herewith, payable to the SECURED PARTY, the loan amount of $2,081,000 at an
interest rate of 5.5% per annum for a period of 30 years in accordance with said Promissory Note
or until all principal and interest are paid in full.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby, DEBTOR is or to'the extentthat this
agreement states that the COLLATERAL is to be acquired after the date hereof, will be, the
owner of the COLLATERAL free from any adverse lien, security interest�or encum l=ances; and
that DEBTOR will defend the COLLATERAL against all claim and. iert:a ds.,.9f all persons at
anytime claiming the same or any interest therein. 4 ' ) I,°' V �') t
2. That the execution and delivery of this agreement by DEBTOR will not ea'. Clawor
agreement governing DEBTOR or to which DEBTOR is a party.
3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not
prohibit any term or condition of this agreement.
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.
5. To pay all taxes and assessments of every nature which may be levied or assessed against
the COLLATERAL.
6. 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.
7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes,
regulations, ordinances, articles of incorporation or by-laws.
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
Appendix 4 to Loan Contract C150062