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<br />ASSIGNMENT OF CERTIFICATE OF DEPOSIT <br /> <br />In consideration of and as security for reimbursement for monies owing under a loan ("Loan") <br />from the Colorado Water Conservation Board ("Lender") to the Riverside Reservoir and Land <br />Company ("Owner") pursuant to Contract Encumbrance Number C150044, ("Loan Contract"), <br />Owner hereby assigns to the Lender Certificate of Deposit No. 27377 in the amount <br />of $23,421.19 ("Collateral") issued by Farmers State Bank of Fort Morgan ("Bank"). Owner <br />warrants that said Certificate of Deposit Account has been established as a special deposit with <br />the funds deposited therein to be used solely to secure repayment of the Loan to Lender. <br /> <br />The Collateral secures the payment and performance of all of Owner's present and future, direct <br />or indirect, absolute and contingent, express and implied, indebtedness, liabilities, obligations <br />and covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract described <br />above and any amendments thereto. This Assignment is made solely to secure performance of <br />the Obligations and is made subject to the following terms, covenants and conditions: <br /> <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 outstanding interest, and then to the principal sum of the Loan. In the event that <br />Owner possesses or receives possession of any instruments or other remittances with <br />respect to the Certificate of Deposit following the giving of such notification, Owner shall hold <br />such instruments and other remittances in trust for Lender apart from Owner's other property, <br />endorse the instruments and other remittances to Lender, and immediately provide Lender <br />with possession of the instruments and 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 attach.ment on the Collateral; (d) the Owner becoming insolvent or unable to <br />pay debts as they mature. The Lender shall give the Owner written notice of any alleged <br />default and an opportunity to cure within thirty (30) days of receipt of such notice before the <br />BORROWER shall be considered in default for purposes of this Assignment. <br /> <br />4. Owner hereby _ appoints Lender as its attorney-in-fact to endorse Owner's name on all <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 />5. The modification or waiver of any of Owner's obligations or Lender's rights under this <br />Assignment must be contained in a writing signed by Lender. A waiver on one occasion shall <br />not constitute a waiver on any other occasion. <br /> <br />6. The rights and remedies of the Lender stated in this Assignment are in addition to any other <br />rights the Lender may have under the Loan Contract or any law. <br /> <br />7. This Assignment shall be binding upon Owner and its successors, assigns, trustees, and <br />receivers. <br /> <br />Appendix 4 to Loan Contract C150044 <br />