C150160 PIF

• Contract/PO #: C150160
• Contractor Name: Ground Water Management Subdistrict of the Central Colorado Water Conservancy District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT
(PLEDGE OF REVENUES)
DATE: JULY 10, 2004
DEBTOR: Ground Water Management Subdistrict of the Central
Colorado Water Conservancy District
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $4,513,200.00, DATED JULY 10, 2004
TERMS OF REPAYMENT: 2.50% PER ANNUM FOR 30 YEARS
LOAN CONTRACT: C150160, DATED JULY 10, 2004
COLLATERAL: All revenues pledged to repay the loan as described in
Pledge of Revenues provisions of the LOAN CONTRACT and
in the Resolution adopted by the DEBTOR on June 15, 2004
To secure payment of the loan evidenced by the PROMISSORY NOTE payable in
accordance with the TERMS OF REPAYMENT, or until all principal, interest, and late
charges, if any, are paid in full, the DEBTOR grants to SECURED PARTY a security interest in
the above described COLLATERAL.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby and any other security interests
described in Section 5 of the Loan Contract Project Summary, DEBTOR is 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 any time claiming the same or any interest therein. " ,
2. That the execution and delivery of this agreement by DE: ;•R n I any law or
agreement governing DEBTOR or to which DEBTOR is a party.'
3. To not permit or allow any adverse lien, security s or-0n9umbrance whatsoever
upon the COLLATERAL and not to permit the samet, ac `Er, r:aI. in_;
4. That byits acceptance of the loan moneypursuant to the tris '* a N ,„%> T 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.
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 any of the
following events or conditions:
a. default in the payment or performance of any obligation contained herein or in the
Promissory Note or Loan Contract;
Appendix 4 to Loan Contract C150160