C150008 Contract

• Contract/PO #: C150008
• Contractor Name: Leroux Creek Water Users Association
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY

In consideration of and as security for a loan ("Loan") from the Colorado Water
Conservation Soard ("Secured Party") to the Leroux Creek Water Users' Association
("Debtor") pursuant to Contract Encumbrance Number C150008, ("Loan Contract"),
Debtor hereby assigns, transfers and grants to Secured Party a security interest in the
funds contained in Deposit Account No. 9164 ("Account") at First State Sank of Hotchkiss
("Sank"), hereinafter referred to as the Collateral. Debtor warrants that the Account has
been established as a special deposit with the funds deposited therein to be used solely
for repayment ot the Loan to Secured Party.

The Collateral secures the payment and performance of all of Debtor's 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. This Assignment is made solely to secure
performance of the Obligations and is made subject to the following terms, covenants and
conditions:

1. This Assignment is effective upon signing and will remain in full force and effect until
Secured Party specifically terminates the security interest in the Collateral in writing.
Secured Party is not required to release this Assignment 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 Secured Party releases this Assignment in
writing, except that, at Debtor's request, the Sank 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 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 Debtor becoming insolvent or unable to pay debts as they
mature. Secured Party shall give the Debtor written 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 this Assignment.

4. Upon or at any time after a default under the Loan Contract as described in Paragraph
3 above, Secured Party shall be entitled to notify the Sank to pay Secured Party the.
. funds contained in the Account. Secured Party shall apply such moneys first to costs
associated with collection, including, but not limited to, reasonable attorney's fees,
next to late charges, if any, then io outstanding interest, and then to the principal sum
of the Loan.

5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the
Collateral or any interest therein as long as this Assignment is in effect.

Attachment 5 to Loan Contract C150008 Amendment NO.1