CT2019-3687 Contract - Laserfiche WebLink

Home Browse Search

APPENDIX 5, SECURITY AGREEMENT Date: April 16, 2019 Borrower: Central Colorado Water Conservancy District, Groundwater Management Subdistrict Secured Party: Colorado Water Conservation Board Promissory Note: $8,697,110.00 Terms of Repayment: 1.20%per annum interest for ten(10)years Loan Contract Number: CT2019-3687 Pledged Revenues: All revenues derived from the ad valorem property tax mill levy authorized at the Borrower's November 2018 election and all of Borrower's right to receive said revenues to repay the loan as described in the Pledged Revenue provisions of the Contract and as a "Parity Obligation" secured from the "Pledged Revenues" within the meaning of the Borrower's Resolution adopted on March 19, 2019 in connection with the issuance and delivery of the Borrower's Limited Tax Water Conservancy Bonds, Series 2019A and as otherwise authorized the Borrower's Resolution adopted on April 16, 2019. 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 Borrower grants to Secured Party a security interest in the above described Pledged Revenues. BORROWER EXPRESSLY WARRANTS AND COVENANTS: 1. That except for the security interest granted hereby and any other security interests described in Appendix 1, Project Summary, Section 5, the Borrower is the owner of the Pledged Revenues free from any adverse lien,security interest or encumbrances;and that the Borrower will defend the Pledged Revenues 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 the Borrower will not violate any law or agreement governing the Borrower or to which the Borrower is a party. 3. Except in accordance with Section 11.D.,of the Loan Contract,to not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the Pledged Revenues and not to permit the same to be attached or replevined. 4. That by its acceptance of the loan money pursuant to the terms of the Contract and by its representations herein,the Borrower shall be estopped from asserting for any reason that it is not authorized to grant a security interest in the Pledged Revenues pursuant to the terms of this agreement. 5. To pay all taxes and assessments of every nature that may be levied or assessed against the Pledged Revenues. 6. That the Borrower's articles of incorporation and by-laws do not prohibit any term or condition of this agreement. UNTIL DEFAULT Borrower may have possession of the Pledged Revenues, provided that Borrower keeps the Pledged Revenues in an account separate from other revenues of Borrower and does not use Pledged Revenues for any purpose not permitted by the Contract. Upon default, Secured Party shall have the immediate right to the possession of the Pledged Revenues. Contract Number:CT2019-3687 Appendix 5 Page 1 of 2