C153857 PIF

• Contract/PO #: C153857
• Contractor Name: Western Mutual Ditch Company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

ASSIGNMENT OF CERTIFICATE OF DEPOSIT
DATE: October 2, 2002
OWNER: Western Mutual Ditch Co.
P. O. Box 282
LaSalle CO 80645
LENDER: Colorado Water Conservation Board
COLLATERAL: Certificate of Deposit Account No. 8003732, $8,576.01
BANK: Weld County Bank
3623rd Avenue
Evans CO 80620
970-506-1000
LOAN CONTRACT: C153857 dated September 17, 1998
PROMISSORY NOTE: $100,000, dated September 17, 1998 pursuant to LOAN CONTRACT
In consideration of and as security for repayment of a loan from the LENDER to the OWNER
pursuant to the PROMISSORY NOTE and LOAN CONTRACT, OWNER hereby assigns to the LENDER the
above-described COLLATERAL issued by the BANK. OWNER warrants that said COLLATERAL has
been established as a special deposit with the funds deposited therein to be used solely to secure
repayment of the loan.
The COLLATERAL secures the payment and performance of all of OWNER'S obligations and
covenants (cumulatively "OBLIGATIONS") pursuant to the LOAN CONTRACT and the PROMISSORY
NOTE described above and any amendments thereto. This Assignment is made to secure
performance of the OBLIGATIONS and is made subject to the following terms, covenants and
conditions:
1. OWNER shall deliver the original Certificate of Deposit to LENDER upon the execution of this
Assignment. This Assignment shall continue until LENDER specifically terminates the security
interest in the COLLATERAL in a writing signed by LENDER.
2. LENDER shall be entitled to notify the BANK to pay LENDER any monies owing OWNER under the
Certificate of Deposit in the event of a default under the OBLIGATIONS. The LENDER shall apply
such monies first to costs associated with collection, inclurbore pcelt's fees, next
to outstanding interest, and then to the principal sum of the tbf'h h hat OWNER
possesses or receives possession of any instruments or other remittances with respect to the
Certificate of Deposit following the giving of such notification, OWNER shall hold such
instruments and other remittances in trust for LENDER apart from OWNER'S other property,
endorse the instruments and other remittances to LENDER, and immediately provide LENDER
with possession of the instruments and other remittances.
3. The OWNER shall be in default under this Assignment upon any of the following events or
conditions: (a) failure or omission to make any payment under the PROMISSORY NOTE when
due; (b) default in the payment or performance of any obligation, covenant, agreement or
liability contained in the LOAN CONTRACT or PROMISSORY NOTE; (c) the making of any levy,
seizure, or attachment on the COLLATERAL; (d) the OWNER becoming insolvent or unable to pay
debts as they mature. The LENDER shall give the OWNER written notice of any alleged default
Appendix 6 to Loan Contract C153857 (revised 10/2/02)