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 DEPOSIT ACCOUNT AS SECURITY
In consideration of and as security for a loan ("�oan") from the Colorado Water
Conservation Board ("Secured Party") to the Chilcot Ditch Company ("Debtor') pursuant
to Contract Encumbrance Number C150029, ("Loan ContracY'), Debtor hereby assigns,
transfers and grants to Secured Parry a security inte rest in the funds conta�ned in Deposit
Account No. n�fls79�a !� y'� (°accounr�) at �'lo�cvPS �. � p�Y � lO�Ql�c� �Uf}
("Bank"), hereinafter refened to as the Collateral. �ebtor warrants that the Account has
been established as a special deposit with the funcs deposited therein to be used solely
for repayment of the Loan to Secured Party.
The Collateral secures the payment and perfxmance of all of Debtors present and
future, direct or indirect, absolute and contingent, express and implied, indebtedness,
liabilities, obligations and covenants (cumulatively "Obligations") under the Loan Contract
described above and any amendments thereto, Thi;� Assignment is made solely to secure
performance of the Obligations and is made subjeci: to the following tertns, cc�venants and
conditions:
1. This Assignment is effective upon signing and �nrill remain in fu!I.force and effECt until
Secured Party specifically terminates the security interest in the Collateral in writing.
Secured Party is not required to release this As:>ignment until the Loan is paid in full.
2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw
any funds from the Account until the Secure:d Parry releases this Assignment in
writing, except that, at Debtor's request, the B��nk shall allow transfers of funds from
the Account to the Secured Party.
3. Debtor shall be in default under the Loan Contract for purposes of this Assignment
upon the occurrence of any of the followinc� 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 maE:ing of any levy, seizure, or attachment
on the Collateral; (d) the Debtor becoming in:;olvent or unable to pay debts as they
mature. Secured Parry shall give the Debtor ��rritten notice of any alleged default and
an opportunity to cure within thirty-(30) days of receipt of such notice before Debtor
shall be considered in default for purposes of tfiis Assignment.
4. Upon or at any time after a default under the Loan Contract as described in Paragraph
3 above, Secured Party shall be entiUed to nutify the Bank to pay Secured Party the
funds contained in the Account. Secured Parly shall apply such moneys first to costs
associated with collection, inciuding, but not limited to, reasonable attomey's fees,
next to late charges, if any, then to outstandin�3 interest, and then to the principal sum
of the Loan.
5. Debtor shall not sell, transfer, assign, give, or othennrise dispose of any of the
Collateral or any interest therein as long as this Assignment is in effect.
6. The modification or waiver of any of Debtor's obiigations or Secured Party's rights
Appendix 7 to Loan Contract C150029