C150041 PIF

• Contract/PO #: C150041
• Contractor Name: Woodchuck Ditch Comapny
• Contract Type: Loan
• Loan Projects - Doc Type: Repayment Information

SECURITY AGREEMENT
DEBTOR: Woodchuck Ditch Company
42095 RCR 44
Steamboat Springs, CO 80487
FEDERAL TAX NUMBER: 84- /5 o(P 45
COUNTY: ROUTT(CODE: 28)
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
receive 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. C150041 (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 $30,000 at an interest
rate of 3.75% per annum for a period of 20 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 BTOR will not violate any law or
agreement governing DEBTOR or to which DEBTOR is ',
3. That, if DEBTOR is a corporation, its certificate and a cites i quo ion and by-laws do not
prohibit any term or condition of this agreeme
4. That by its acceptance of the loan money11
r• 9 to=. j.. of the CONTRACT and by its
representations herein, DEBTOR shall be estop.-• ' ro - '.'.s I' • : r a ***reason that it is not
authorized to grant a security interest in the COLLATERAL purs •. to iie,t� m of this agreement.
5. To pay all taxes and assessments of every nature which may be lelev edssessed 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 the immediate right to the possession of the COLLATERAL.
DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the
following events or conditior .
Appendix 5 to Loan Contract C150041