C153770 Contract

• Contract/PO #: C153770
• Contractor Name: Summit Reservoir and Irrigation Company
• Contract Type: Loan
• Water District: 32
• County: Montezuma
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Contract Documents

ASSIGNMENT OF CERTIFICATE OF DEPOSIT
In consideration of and as security for re�mbursement for monies owing undet a loan from
the Colorado Water Conservation Board ("Lender') to the Summit Reservoir & Irrigation Co:
("Owner") in the amount of $200,000 ("Loan") pursuant to Contract Encumbrance Number
C153770 ("Loan ContracY'), Owner hereby assigns to the Lender the foilowing Certificate of
Deposit and all principal, interest and other proceeds therefrom (cumulatively "Collateral"):
Certificate of Deposit No: 1 S/S3 in the amount of $11,217.52 issued by Dolores
State Bank of Dolores, Colorado ("Bank").
The Coilateral secures the payment and perFormance of all of Owners present and future,
direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities,
obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract
described above and any amendments thereto. This Assignment is made solely to secure
performance of the Obligations and is made subject to the following terms, covenants and
conditions:
1. Owner shall deliver the originai Certificate of Deposit to Lender upon the execution of this
Assignment. This Assignment shall continue until Lender specifically terminates the security
interest in the Collateral in a writing signed by Lender.
2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under the
Certificate of D�posit in the event of a default under the Obligations. The Lender shall apply
such monies first to costs associated with cc�llection, including reasonabls attomey's fees, next
to outstanding inte�est, and then to the prir�cipal sum of the Loan. In the event that Owner
possesses or receives possession of any instruments or other remittances with respect to the
Certificate of peposit following the giving of such notification, Owner shall hoid such
instruments and other remittances in trust for Lender apart from Owners other property,
endorse the instruments and other remittances to Lender, and immediately provide Lender
with possession of the instruments and other remittances.
3. The .Owner shall be in default under this Assignment upon the occurrence of any of the
foilowing events or conditions: (a) failure or omission to make any payment under the Loan
Contract when due; (b) default in the payment or performance of any obligation, covenant,
agreement or liability contained or referred to in the Loan Contract; (c) the making of any levy,
seizure, or attachment on the Collateral; (d) the Owner becoming insoivent or unabie to pay
debts as they mature.
4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owners name on aii
instruments and other remittances payabie to Owner with respect to the Certificate of Deposit.
This power of attorney is coupled with an interest and is irrevocable.
5. The modification or waiver of any of OWners obligations or Lenders rights under this
Assignment must be contained in a writing signed by Lender. A waiver on one occasion shall
not constitute a waiver on any other occasion.
Appendix D to Loan Contract #C15377U