C150029 Contract

• Contract/PO #: C150029
• Contractor Name: Chilcott Ditch Company
• Contract Type: Loan
• Water District: 10
• County: El Paso
• Bill Number: EIA
• Loan Projects - Doc Type: Contract Documents

ASSIGNMENT OF CERTIFICATE OF DEPOSiT

In consideration of and as security for reimbursement for monies owing under a loan ("Loan") from
the Colorado Water Conservation Board ("Lender") to the Chilcott Ditch Company ("Owner")
pursuant to Contract Encumbrance Number C150029, ("Loan Contract"), Owner hereby assigns to
the Lender Certificate f Deposit f\jo. ~ooofj/ 0 in the amount of $14,457,52 ("Collateral")
issued by IJ() t>S Ii t: t /) /0 I"a ("Bank"). Owner warrants that said Certificate
of Deposit Account has been established as a special deposit with the funds deposited therein to be
used solely to secure repayment of the Loan to Lender.

The Collateral secures the payment and performance of all of Owner's 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 original 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 af Deposit in the event of a default under the Obligations. The Lender shall apply
such monies first to costs associated with collection, including reasonable attomey's fees, next
to outstanding interest, and then to the principal 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 Deposit following the giving of such notification, Owner shall hold such instruments
and other remittances in trust for Lender apart from Owner's 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 following
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 insolvent or unable to pay debts as they mature. The
Lender shall give the Owner written notice of any alleged default and an opportunity to cure
within thirty (30) days of receipt of such notice before the BORROWER shall be considered in
default for purposes of this Assignment.

4, Owner hereby appoints Lender as its attomey-in-fact to endorse Owner's name on all
instruments and other remittances payable to Owner with respect to the Certificate of Deposit.
This power of attomey is coupled with an interest and is irrevocable,

5, The modification or waiver of any of Owner's obligations or Lender's 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.

6, The rights and remedies of the Lender stated in this Assignment are In addition to any other
rights the Lender may have under the Loan Contract or any law.

7. This Assignment shall be binding upon Owner and its successors, assigns, trustees, and

Appendix 4 to Loan Contract C150029