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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 fro~ <br />the Colorado Water Conservation Board ("Lender") to Jackson Lake Reservoir and Irrigation <br />Company ("Owner") in the amount of up to $389,700 ("Loan") pursuant to Contract <br />Encumbrance Number C150043, ("Loan Contract"), Owner hereby assigns to the Lender <br />Certificate of Deposit No. ~3..r<9""..s-7'..('7' in the amount of $3,070.78 ("Collateral") issued by <br />Community First National Bank ("Bank"). Owner warrants that said Certificate of Deposit <br />Account has been established as a special deposit with the funds deposited therein to be <br />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, <br />direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan <br />Contract described above and any amendments thereto. This Assignment is made solely to <br />secure performance of the Obligations and is made subject to the following terms, covenants <br />and 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 <br />security 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 <br />the Certificate of Deposit in the event of a default under the Obligations. The Lender <br />shall apply such monies first to costs associated with collection, including reasonable <br />attorney's fees, next to outstanding interest, and then to the principal sum of the Loan. In <br />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 <br />notification, Owner shall hold such instruments and other remittances in trust for Lender <br />apart from Owner's other property, endorse the instruments and other remittances to <br />Lender, and immediately r'Jrovide Lender with possession of the instruments and other <br />remittances, <br /> <br />3. The Owner shall be in at/ault undar this Assignment upon the occurronce of any of the <br />following events or conditions: (a) failure or omission to make any payment under the <br />Loan Contract when due; (b) default in the payment or performance of any obligation, <br />covenant, agreement or liability contained or referred to in the Loan Contract; (c) the <br />making of any levy, seizure, or attachment on the Collateral; (d) the Owner becoming <br />insolvent or unable to pay debts as they mature. The Lender shall give the Owner <br />written notice of any alleged default and an opportunity to cure within thirty (30) days of <br />receipt of such notice before the BORROWER shall be considered in default for purposes <br />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 <br />shall 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 <br /> <br />Attachment 3 to Contract C150043 Amendment No. 1 <br />