C-153757 PIF

• Contract/PO #: C-153757
• Contractor Name: Decker Lateral Company, The
• 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 Decker Lateral Company ("Debtor") in the amount of $100,000.00 ("Loan") pursuant to
Contract Encumbrance Number C153757 ("Loan Contract"), Debtor hereby assigns,:transfers and
grants to Secured Party a security interest in the funds contained in Deposit Account Noy. I /3
(the "Account") at the Eaton Bank, Eaton, Colorado ("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, director;
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 in the
amount of$5,959.82 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 cure within thirty (30) days of receipt of such notice before
Debtor shall be considered in default for purposes of this Assignment.
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.
6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under this
Assignment must be contained in a writing signed by Secured Party. A waiver on one occasion
shall not constitutea waiver on any other occasion.
7. The rights and remedies of the Secured Party stated in this Assignment are in addition to any
other rights the Secured Party may have under the Loan Contract or any law.
8. This Assignment shall be binding upon Debtor and its successors, assigns, trustees, and
Appendix 6 to Loan Contract C153757