C150036 Contract

• Contract/PO #: C150036
• Contractor Name: Weld County Tri Area Sanitation District
• Contract Type: Loan
• Water District: 2
• County: Adams
• Bill Number: HB 00-1419
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

(PLEDGE OF REVENUES)

DATE: DECEMBER12,2007

DEBTOR: ST. VRAIN SANITATION DISTRICT, ACTING BY AND THROUGH ITS
WATER ACTIVITY ENTERPRISE

SECURED PARTY: COLORADO WATER CONSERVATION BOARD
1313 SHERMAN STREET, ROOM 721
DENVER, CO 80203

PROMISSORY NOTE: $1,907,386.83, DATED DECEMBER 12, 2007

TERMS OF REPAYMENT: 5.00% PER ANNUM FOR 27 YEARS

LOAN CONTRACT: C150036, DATED APRIL 1,2002, AND AMENDED SEPTEMBER 9,
2003 AND DECEMBER 12, 2007

eOLLATERAL: All revenues of the Debtor's Water Activity Enterprise, and
any other funds legally available to the Debtor, in an amount
sufficient to pay the annual amount due under the Loan
Contract.

To secure payment of the loan evidenced by the PROMISSORY NOTE payable in
accordance with the TERMS OF REPAYMENT, or until all principal, interest, and late
charges, if any, are paid in full, the DEBTOR grants to SECURED PARTY a security interest in
the above described COLLATERAL.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby and any other security interests
described in Section 5 of the Loan Contract Project Summary, DEBTOR is the owner of
the COLLATERAL free from any adverse lien, security interest or encumbrances; and
that DEBTOR will defend the COLLATERAL against all claims and demands of all persons
at any time claiming the same or any interest therein.
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. To not permit or allow any adverse lien, security interest or encumbrance whatsoever
upon the COLLATERAL and not to permit the same to be attached or replevined.
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.
DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the following events
or conditions:
a. default in the payment or performance of any obligation contained herein or in the
Promissory Note or Loan Contract;
b. dissolution, termination of existence, insolvency, business failure, appointment of
a receiver of any part of the property of, assignment for the benefit of creditors by,

Appendix C to Loan Contract C150036 Amendment No.2