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<br />(;.l <br /> <br />,;~') <br />~ <br /> <br />RECb . :.::: <br />JUN 1 6 1998 <br /> <br />ASSIGNMENT OF CERTIFICATE OF DEPOSIT <br /> <br />Colorado Water <br />Conservation Board <br /> <br />In consideration of and as security for reimbursement for monies owing under a loan from <br />the Colorado Water Conservation Board ("Lender") to The Farmers Pawnee Canal Company <br />("Owner") in the amount of $22,250 ("Loan") pursuant to Contract Encumbrance Number <br />C 153825, ("Loan Contract"), Owner hereby assigns to the Lender Certificate of Deposit No. _ <br />(,,5'1/357 in the amount of $2,675,37 ("Collateral") issued by First Security Bank, Sterling, <br />Colorado ("Bank"), Owner warrants that said Certificate of Deposit Account has been <br />established as a special deposit with the funds deposited therein to be used solely to secure <br />repayment of the Loan to Lender. <br /> <br />The Collateral secures the payment and performance of all of Owner's present and future, <br />direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract <br />described above and any amendments thereto, This Assignment is made solely to secure <br />performance of the Obligations and is made subject to the following terms, covenants and <br />conditions: <br /> <br />1. Owner shall deliver the original Certificate of Deposit to Lender upon the execution of this <br />Assignment This Assignment shall continue until Lender specifically terminates the security <br />interest in the Collateral in a writing signed by Lender. <br /> <br />2, Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under the <br />Certificate of Deposit in the event of a default under the Obligations. The Lender shall apply <br />such monies first to costs associated with collection, including reasonable attorney's fees, <br />next to late charges, if any, next to outstanding interest, and then to the principal sum of the <br />Loan. In the event that Owner possesses or receives possession of any instruments or other <br />remittances with respect to the Certificate of Deposit following the giving of such notification, <br />Owner shall hold such instruments and other remittances in trust for Lender apart from <br />Owner's other property, endorse the instruments and other remittances to Lender, and <br />immediately provide Lender with ros"ession of the instruments aiid other remittances. <br /> <br />3, The Owner shall be in default under this Assignment upon the occurrence of any of the <br />following events or conditions: (a) failure or omission to make any payment under the Loan <br />Contract when due; (b) default in the payment or performance of any obligation, covenant, <br />agreement or liability contained or referred to in the Loan Contract; (c) the making of any <br />levy, seizure, or attachment on the Collateral; (d) the Owner becoming insolvent or unable to <br />pay debts as they mature. The STATE shall give the BORROWER written notice of any <br />alleged default and an opportunity to cure within thirty (30) days of receipt of such <br />notice before the BORROWER shall be considered in default for purposes of this <br />assignment, <br /> <br />4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on al/ <br />instruments and other remittances payable to Owner with respect to the Certificate of <br />Deposit This power of attorney is coupled with an interest and is irrevocable. <br /> <br />Appendix 4 to loan Contract C 1 53825 <br />