C153835A PIF

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

ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY
In consideration of and as security for two loans ("Loans") from the Colorado Water
;onservation Board ("Secured Party") to the Greeley and Loveland Irrigation Company
("Debtor") pursuant to Contract Encumbrance Numbers C153788 and C153835, ("Loan
Contracts"), Debtor hereby assigns, transfers and grants to Secured Party a security interest in
the funds contained in Deposit Account No. 100572853' (the "Account") at Community First
National Bank of Greeley ("Bank"), hereinafter referred to as the Collateral. Debtor warrants
that the Account has been established as a special deposit with the funds deposited therein to
be used solely for repayment of the Loans to Secured Party.
The Collateral secures the payment and performance of all of Debtor's present and
future, direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities,
obligations and covenants (cumulatively, "Obligations") under the Loan Contract described
above and any amendments thereto. This Assignment is made solely to secure performance of
the Obligations and is made subject to the following terms, covenants and conditions:
1. This Assignment is effective upon signing and will remain in full force and effect until Secured
Party specifically terminates the security interest in the Collateral in writing. Secured Party is
not required to release this Assignment until the Loans are paid in full.
2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw any
funds from the account listed above until the Secured Party releases this Assignment in
writing, except that, at Debtor's request, the Bank shall allow the transfer of the annual
payments on the Loans in the amount of $2,778.31 for Contract Encumbrance Number
C153788 and $18,268.60 for Contract Encumbrance Number C153835 to Secured Party.
3. Debtor shall be in default under the Loan Contracts for purposes of this Assignment upon the
occurrence of any of the following events or conditions: (a) failure or omission to make any
payments under the Loan Contracts when due; (b) default in the payment or performance of
any obligation, covenant, agreement or liability contained or referred to in the Loan
Contracts; (c) the making of any levy, seizure, or attachment on the Collateral; (d) the Debtor
becoming insolvent or unable to pay debts as they mature. Secured Party shall give the
Debtor written notice of any alleged default and an opportunity to cure within thirty (30) days
of receipt of such notice before Debtor shall be considered in default for purposes of this
Assignment.
4. Upon or at any time after a default under the Loan Contracts as described in Paragraph 3
above, Secured Party shall be entitled to notify the Bank to pay Secured Party the funds
contained in the Account. Secured Party shall apply such moneys first to costs associated
with collection, including, but not limited to, reasonable attorney's fees, then to charges for
late payments, next to outstanding interest, and then to the principal sum of the Loans.
5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or
any interest therein as long as this Assignment is in effect.
6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under this
Assignment must be contained in a writing signed by Secured Party. A waiver on one
Appendix 6 to Loan Contract C153835