C153857 PIF

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

ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY
In consideration of and as security for a loan from the Colorado Water Conservation
Board ("Secured Party") to The Western Mutual Ditch Company ("Debtor") in the amount of
$100,000 ("Loan") pursuant to Contract Encumbrance Number C153857, ("Loan Contract"),
Debtor hereby assigns, transfers and grants to Secured Party a security interest in the funds
contained in Deposit Account No. 0201023001 (the "Account") at The Eaton Bank
West 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 Loan 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 Loan is 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 Loan
payment to Secured Party.
3. Debtor shall be in default under the Loan Contract for purposes of this Assignment upon the
occurrence of any of the following events or conditions: (a) failure or omission to make any
payment under the Loan Contract when due; (b) default in the payment or performance of
any obligation, covenant, agreement or liability contained or referred to in the Loan Contract;
(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 curev ,,t1 ' y y,
) 5 receipt of
such notice before Debtor shall be considered in default forpt r oses thi Asgt ent.
4. Upon or at any time after a default under the Loan Contract 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, next to outstanding
interest, and then to the principal sum of the Loan.
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.
Appendix 6 to Loan Contract C153857