C153835A PIF

• Contract/PO #: C153835A
• Contractor Name: Greeley & Loveland Irrigation Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
DEBTOR: The Greeley and Loveland Irrigation Company
808 23rd Street
Greeley, Colorado 80631
FEDERAL TAX NUMBER: 84-0217090
COUNTY: LARIMER COUNTY(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 stock and all of DEBTOR'S right to
received said assessment revenues to repay the indebtedness on the amount loaned to debtor by
secured party, as described in Pledge of Property provisions in Contract No. C153835 (coNTRACT).
To secure payment of the indebtedness evidenced by certain Promissory Note Provisions of CONTRACT
between the above named parties herewith, payable to the SECURED PARTY, the loan amount of$308,000
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 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; and that DEBTOR will
defend the COLLATERAL against all claims and demands of all persons at anytime 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. 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 PARTY shall have
Appendix 5 to Loan Contract C153835