PROJ00071

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

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Deed of Trust

This indenture, made this _ day of 1997, between the Lower Arkansas Water
Management Association, whose address is P.O. Box 1161, Lamar, CO 81052, hereinafter referred to as GRANTOR, and the
. Public Trustee of the County of Prowers, State of Colorado, hereinafter referred to as PUBLIC TRUSTEE,

Witnesseth, that whereas, GRANTOR has executed a Promissory Note, which is a part of Loan
Contract #C153768 (the Contract), as amended, for a loan in the principal sum of $2,300,000.00 to be repaid to the State of
Colorado for the use and benefit of the Department of Natural Resources, Water Conservation Board, whose address is
1313 Sherman Stree~ Room 721, Denver, Colorado 80203, with interest thereon from the date of first disbursement of
funds under the Contract at the effective interest rate of 3% per annum. payable in 40 annual installments, in accordance
with the terms of the Promissory Note, or until/oan is paid in full.

And whereas, the GRANTOR is desirous of securing payment of the principal and interest of said
promissory note to the State of Colorado.

Now, therefore, the GRANTOR. in consideration of the premises and for the purpose aforesaid, does
hereby grant. bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, to wit
(collectively or hereinafter referred to as the "Property").

To have and to hold the same, together with all and singular the privileges and appurtenances
thereunto belonging: In Trust nevertheless. that in case of defilUIt in the payment of said note, or any part thereof, or in the
payment of the interest thereon, according to the tenor and effect of said note. or in the payment of any prior encumbrances,
principal or interes~ if any, or in case default shall be made in or in case of violation or breach of any of the terms,
conditions, covenants or agreements contained in the Contract, the beneficiary hereunder may declare a violation of any of
the covenants contained in the Contract and elect to advertise said Property for sale, and demand such sale by filing a
notice of such election and demand for sale with the PUBLIC TF<USTEE. Upon receipt of such notice of election and demand
for sale, the PUBLIC TRUSTEE shall cause a copy of the same to be recorded in the recorder's office of the county in which
said Property is situated, it shall and may be lawful for the PUBLIC TRUSTEE to sell and dispose of the same (en masse or in
separate parcels, as the said PUBLIC TRUSTEE may think best), and all the righ~ title and. interest of the GRANTOR, its
successors or assigns therein, at public auction at such time and at such location as shall be designated in the PUBLIC
TRUSTEE's Notice of Sale, for the highest and best price the selme will bring in cash, four weeks public notice having bilen
. previously given of the time and place of such sale, advertisement once each week for .five consecutive weeks, in some
newspaper of general circulation at that time published in said County of Prowers, a copy of which notice shall be mailed
within ten days from the date of the first publication thereof to the GRANTOR at the address herein given and to such person
or persons appearing to have acquired a subsequent record i11terest in said Property at the address given in the recorded
instrument; where only the county and state is given as the address then such notice shall be mailed to the county sea~ and
to make and give to the purchaser of the Property at such sale. a certificate in writing describing the Property purchased.
and the sum paid therefor, and the time when the purchaser (or other person entitled thereto) shall be entitled to the deed
therefor, unless the same shall be redeemed as is provided by law; and said PUBLIC TRUSTEE shall, upon demand by the
person holding the said certificate of purchase. when said demand is made, or upon demand by the person entitled to a
deed to and for the Property purchased. at the time such demand is made. the time for redemption having expired. make
and execute to such person a deed to the Property purchased, which said deed shall be in the ordinary form of a
conveyance, and shall be signed, acknowledged and delivered by the said PUBLIC TRUSTEE and shall convey and quitclaim
to such person entitled to such deed, the Property purchased as aforesaid and all the right, title, interest, benefit and equity
of redemption of the GRANTOR, its successors and assigns made therein, and shall recite the sum for which the said
Property was sold and shall refer to the power of sale therein contained, and to the sale made by virtue thereof; and in case
of an assignment of such certificate of purchase, or in case of the redemption of the Property, by a subsequent
encumbrancer, such assignment or redemption shall also be referred 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 avails of such sale, after first paying and retaining all
fees, charges and costs of making said sale, pay to the beneficiary hereunder the principal and interest due on said note
according to the tenor and effect thereof, and all moneys advanced by such beneficiary or legal holder of said note for
insurance, taxes and assessments, with interest thereon at ten per cent per annum, rendering the surplus, if any, unto the
GRANTOR, its legal representatives or assigns; which sale and said deed so made shall be a perpetual bar, both in law and
equity, against the GRANTOR, its successors and assigns, and all other persons claiming the Property, or any part thereof,
by, from, through or under the GRANTOR, or any of them. The holder of said note may purchase 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 purchase money.
And the GRANTOR, for itself and its successors or assigns covenants and agrees to and with the PUBLIC TRUSTEE,
that at the time of the unsealing of and delivery of these presents it is well seized of the Property in fee simple. and has
good right, full power and lawful authority to gran~ bargain, sell and convey the same in the manner and form as aforesaid;
hereby fully and absolutely waiving and releasing all rights and claims it may have in or to said Property as a Homestead

Appendix 6 to Loan Contract #C153768