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<br />Deed of Trust
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<br />This indenture, made this 1"5t'dayof A......y.....'" t 1997, between the Lower Arkansas Water
<br />Management Association, whose address is P.O. Box 1161, Lamar, CO 81052, hereinafter referred to as GRANTOR, and
<br />the Public Trustee of the County of Prowers, State of Colorado, hereinafter referred to as PUBLIC TRUSTEE,
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<br />Witnesseth, that whereas, GRANTOR has executed a Promissory Note, which is a part of Loan Contract
<br />C153756 (the Contract), for a loan in the principal sum of $65,000.00 to be repaid to the State of Colorado for the use and benefit
<br />. of the Department of Natural Resources, Water Conservation Board, whose address Is 1313 Sherman Street, Room 721
<br />Denver, Colorado 80203, with interest thereon from the date of first disbursement of funds under the Contract at the interest rat~
<br />of 314% per annum, payable in 10 annual installments, in accordance with the terms of the Promissory Note, or until loan is paid
<br />in full.
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<br />And whereas, the GRANTOR Is desirous of securing payment of the principal and interest of said promissory note
<br />to the State of Colorado. ..
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<br />Now, therefore, the GRANTOR, In consideration of the premises and for the purpose aforesaid, does hereby
<br />gran~ bargain, sell and convey unto the said PuBucTRUSTEE in trust forever, to wit 100 shares of capital stock of the Highland
<br />Irrigation Company which are evidenced by Stock Certificate No. 328 which represents a total of 2,204.6 shares. The
<br />shares represent Grantor's pro rata interest in the following water rights: Priority No. 27, decreed for 16.6 cfs in the original
<br />adjudication for Water District No. 19 on August 10, 1903, with a May 31, 1866 appropriation date, which was originally
<br />decreed to the Sizer Ditch and was transferred to the Highland Canal by decree of the Bent County District Court dated
<br />November 11, 1910. Priority No. 97, decreed for 7.4 cfs in the original adjudication for Water District No. 19 on August 10,
<br />1 903, with an April 1 , 1884 appropriation date, which was originally decreed to the Sizer Ditch and transferred to the Highland
<br />Canal by decree of the Bent County District Court dated November 11, 1 91 O. Priority No. 120, decreed for 38.5 cfs by the
<br />Bent County District Court on August 30, 1 922, with a March 1, 1 90g appropriation date, (collectively or hereinafter referred to
<br />as the 'Property"). .
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<br />To have and to hold the same, .together with all and singular the privileges and appurtenances thereunto
<br />belonging: In Trust nevertheless, that in case of default in the payment of said note, or any part thereof, or in the payment of the
<br />interest thereon, according to the tenor and effect of said note or in the payment of any prior encumbrances, principal or interes~
<br />n any, or in case default shall be made in or in case of violation or breach of any of the terms, conditions, covenants or
<br />agreements contained in the Contract, the beneficiary hereunder may declare a violation of any of the covenants contained in the
<br />Contract and elect to advertise said Property for sale, and demand such sale by filing a notice of such election and demand for
<br />sale with the Pueuc TRUSTEE. Upon receipt of such notice of election and demand for sale, the Pueuc TRUSTEE shall cause a
<br />copy of the same to be recorded in the recorde(s office of the county in which said Property Is situated, n shall and may be lawful
<br />for the PuBUC TRUSTEE to sell and dispose of the same (en masse or in separate parcels, as the said PUBUC TRUSTEE may think
<br />best), and all the righ~ title and interest of the GRANTOR, its successors or assigns therein, at public auction at such time and at
<br />such location as shall be designated in the PUBUC TRUSTEE'S Notice of Sale, for the highest and best price the same will bring in
<br />cash, four weeks public notice having been previously given of the time and place of such sale, advertisement once each week
<br />for five consecutive weeks, in some newspaper of general circulation at that time published in said County of Prowers, a copy of
<br />which notice shall be mailed within ten days from the date of the first publication thereof to the GRANTOR at the address herein
<br />given and to such person or persons appearing to have acquired a subsequent record interest in said Property at the address
<br />given In the recorded instrument; where only the county and state Is given as the address then such notice shall be mailed to the
<br />county seat, and to make and give to the purchaser of the Property at such sale, a certificate in writing describing the Property
<br />purchased, and the sum paid therefor, and the time when the purchaser (or other person entitled thereto) shall be entitled to the
<br />deed therefor, unless the same shall be redeemed as is provided by law; and said Puauc TRUSTEE shall, upon d~mand by the
<br />person hoiding the said certificate of purchase, when said demand is made, or upon demand by the person e.ntitled to a deed to
<br />and for the Property purchased, at the time such demand is made, the time for redemption having expired, make and execute to
<br />such person a deed to the Property purchased, which said deed shall be in the ordinary form of a conveyance, and shall be
<br />signed, acknowledged and delivered .by the said Pueuc TRUSTEE and shall convey and quitclaim to such person entitled to:such
<br />deed, the'Property purchased as aforesaid and all the righ~ tiije, interest, benefit and equity of redemption. of the GRANTOR, itS
<br />successors and assigns made therein, and shall recite the sum for which the said Property was sold and'stlaJl refer to the power
<br />of sale therein contained, and to the sale made by virtue thereof; and in case of an assignment of such cei'iificate .of purchase, or
<br />in case of the redemption of the Property, by a subsequent encumbrancer, such assignment or redemption shalll!l.~o be referred
<br />to in such deed; but the notice of sale need not be set out in such deed and the PUBLIC TRUSTEE shall, out of the proceeds or
<br />avails of such sale, after first paying and retaining all fees, charges and costs of making said sale, pay to the beneficiary
<br />hereunder the principal and interest due on said note according to the tenor and effect thereof, and all moneys advancetl by such
<br />beneficiary or legal holder of said note for insurance, taxes and assessments, with interest thereon at ten per cent per annum,
<br />rendering the surplus, n any, unto the GRANTOR, its legal representatives or assigns; which sale and said deed so made shall be a
<br />perpetual bar, both in law and equity, against the GRANTOR, its successors and assigns, and all olher perso~s claiming the
<br />Property, or any part thereof, by, from, through or under the GRANTOR, or any of them. The holder of said note. may purchase
<br />Property or any part thereof; and it shall not be Obligatory upon the purchaser at any such sale to see to the application of .the
<br />purchase money. ., .' .
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<br />Appendix E to Loan Contract #C153756
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