CT2019-2792 Contract

• Contract/PO #: CT2019-2792
• Contractor Name: Arabian Acres Metropolitan District
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

APPENDIX 5, SECURITY AGREEMENT
Date: February 20,2019
Borrower: Arabian Acres Metropolitan District, acting by and through the water
activity enterprise
Secured Party: Colorado Water Conservation Board
Promissory Note: $404,000.00
Terms of Repayment: 1.85%per annum interest for 10 years
Loan Contract Number: CT2019-2792
Pledged Revenues: All revenues derived from water activity enterprose revenues and all of
Borrower's right to receive said revenues to repay the loan as described in Pledged Revenues provisions of
the Contract and Borrower's Resolutions adopted May 15, 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.E.,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.
BORROWER SHALL BE IN DEFAULT under this agreement upon any of the following
events or conditions:
Contract Number:
Appendix 5
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