C153639L PIF

• Contract/PO #: C153639L
• Contractor Name: The New Cache La Poudre Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

AMENDED SECURITY AGREEMENT
DEBTOR: The New Cache La Poudre Irrigation Company
P. O. Box 104
Lucerne, CO 80646
FEDERAL TAX NUMBER: 84-0279140
COUNTY: LARIMER (CODE: 06)
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 assessments on shares to repay indebtedness
on its diversion structure on the Poudre River as approved by the shareholders or the Board of
Directors pursuant to 7-42-104 CRS, as described in Loan Contract No. C153683.
To secure payment of the indebtedness evidenced by certain Promissory Note between the
above named parties herewith, in the amount of $450,000.00 at an interest rate of 4% per
annum for a term of 25 years, payable by DEBTOR to the SECURED PARTY until all principal and
interest are paid in full in accordance with said Promissory Note. The Parties are amending this
security agreement as part of Amendment No. 1 to the Loan Contract to reduce the loan amount to
$450,000.00.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest grant hereby, DEBTOR is, or to the extent that 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 encumbrances.
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. 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 orassessed;against
the COLLATERAL.
6. To not permit or allow any adverse lien, security interest or.encumbrance what§oeyer upon
the COLLATERAL and not to permit the same to be attached or replevind.
7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes,
regulations, ordinances, articles of incorporation or by-laws.
UNLESS IT DEFAULTS DEBTOR may have possession of the COLLATERAL, provided that
DEBTOR keeps all revenues derived from membership assessments in the amount of the annual
loan payments due under the contract, as amended, in an account separate from other revenues
of DEBTOR and does not use said revenues for any purpose not permitted by the CONTRACT. If
Attachment B to Loan Contract No. C153639L Amendment 1