PROJC00346

• Contract/PO #: C153785
• Contractor Name: Chipperfield Lane Ditch, Inc.
• Contract Type: Loan
• Water District: 39
• County: Garfield
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

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AMENDED SECURITY AGREEMENT

DEBTOR: Chipperfield Lane Ditch, Inc.
530 Co. Rd. 326
Silt, CO 81652

FEDERAL TAX NUMBER: 84-1432481

COUNTY: GARFIELD (CODE: 24)

SECURED PARTY: State of Colorado - Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203

COLLATERAL: Contract Rights (Code: 030)

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DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following
property and any and all additions, accessions and substitutions thereto or therefor, hereinafter
called the COLLATERAL: All revenues derived from annual dues and from assessments levied to
repay the indebtedness on the amount loaned to DEBTOR by SECURED PARTY, and all rights of
DEBTOR to receive said dues and assessment'revenues from its members, as described in pledge
of property provisions in Loan Contract No. C153785.

To secure payment of the indebtedness evidenced by certain Promissory Note between the
above named parties herewith, in the amount of $41,011.94 at an interest rate of 3.75 % per
annum for a term of 30 years, payable by DEBTOR to the SECURED PARTY until all principal and
interest are paid in full in accordance with said Promissory Note. The Parties are amending this
security agreement as part of Amendment No. 1 to the Loan Contract to reduce the loan amount to
$41,011.94.

DEBTOR EXPRESSLY WARRANTS AND COVENANTS:

1. That except for the security interest grant hereby, DEBTOR is, or to the extent that this
agreement states that the 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.

2. That the execution and delivery of this agreement by DEBTOR will not violate any law or
agreement governing DEBTOR or to which DEBTOR is a party.

3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do
not prohibit any term or condition of this agreement.

4, That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its
representations herein, DEBTOR shall be estopped from asserting for any reason that it is not
authorized to grant a security interest in the COLLATERAL pursuant to the. terms of this
agreement.

5. To pay all taxes and assessments of every nature which may be levied or ass~ss'eid againsT.
the COLLATERAL. .

6. To not permit or allow any adverse lien, security interest or enculJlbrancey;.hat"soever upon
the COLLATERAL and not to permit the same to be attached or replevined. ' .

7, That the DEBTOR will not use the COLLATERAL in violation of any appl)cable statutes;
regulations, ordinances, articles of incorporation or by-laws, . .
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UNLESS IT DEFAULTS DEBTOR may have possession of the COLLATERAL,'pr'ovidedthat
DEBTOR ,keeps all revenues derived from membership assessments in the amount of the -~nnual
loan payments due under the contract, as amended, in an account separate from other revenues

Attachment B to Loan Contract No. C153785 Amendment 1