C153739 Contract

• Contract/PO #: C153739
• Contractor Name: Aristrocrat Ranchettes Water Project, Inc.
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SB 96-153
• Loan Projects - Doc Type: Contract Documents

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DEBTOR;

FEDERAl TAX ID NUMBER;
COUNTY:

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~SECUREEI PARTY:
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SECURJrTY AGR1BlEMENT

ARISTOCRAT RANCHETTE WATER PROJECT, INC.
P. O. Box 247
Fort lupton, CO 80621
84-0690646
Weld (Code 03)

STATE OF COLORADO for the use and benefit of the
Department of Natural Resources, Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO B0203

Contract Rights (Code: 030)

DEBTOR, for conslderalfon, hereby grants to SECURED PARTY a security Interest in the following properly and
any and all additions, accessions and substnullons thereto or therefor, hereinafter called the COLLATERAL: all
revenues derived from water charges and assessments pledged to repay the indebtedness on the amount
loaned to debtor by secured POlrly, as described in pledge of revenues proVisions in contract #C153739
(Contract).

To s.ecure payment of the indebtedness evidenced by certain Promissory Note which Is a part of COrrtract
between the above named parties herewith, payable to the SECURED PARTY in a loan amount of $600,000 with
Interest at 4 y.;% for 30 years payable In accordance with said Promissory Note until all principOII and interest
are paId In full.

DEBTOR CXPRESSl Y WARRANTS AND COVENANTS;

1. That except for the security Interest granted hereby DEBTOR Is. or to the extenlthatthis agreement slates
fhalthe COLLATERAL is to be acqUired after the date hereof, will be. the owner of the COLLATERAL free from
any adverse lien. security Interest or encumbrances; and that DEBTOR will defend the COLLATERAl. againsl
all claims and demands of all persons at anytime claiming the same or any inlerestthereln.

2. Promptly to nolffy SECURED PARTY of any changes In the location of the COLLATERAL

3. To pay all taxes and assessments of every nature which may be levied or assessed against the
COLLATERAl.

4. To not permit or allow any adverse lien,' security Interest or encumbrance whatsoever upon the
COLlATERAl and not to permit the same to be attached or replevined.

5. That the COLLATERAL Is In good condition, and that the DEBTOR will, at its own expense, keep the same in
good condllfon and from lime to time, forthwith, replace and repair all such parts of the collateral as may
be broken, wom out, or damaged without allowing any lien 10 be created upon the COLLATERAL on account
of such replacement or repairs. and that the SECURED PARTY may examine and Inspect the COLLATERAL at
any lime, wherever located.

6. That the DeeToR will not use the COLLATERAL In violation of any applicable statutes, regulations or
ordinances.

7. The DEBTOR will keep the COLLATERAL at all limes Insured against risks of loss or damage by fire
(including so-called extended coverage), theft and such other casualties as the SECURED PARTY may
reasonably require, Including collision In the case of any molor vehicle, all In such amounts, under such
forms of policies, upon such terms, for such periods, and written by such companies or underwriters as
the SeCURED PARTY may approve, losses In all cases to be payable to the SECURED PARTY and the
DEBTOR as their interest may appear. All pOlicies of Insurance shall provide for at least ten days' prior
wrltten notice of cancellation to the SeCURED PARTY; and the DEBTOR shall furnish the SECURED PARTY

Appendix F to Loan Contract #C153739