Laserfiche WebLink
<br />", <br /> <br />ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY <br /> <br />In consideration of and as security for a loan ("Loan") from the Colorado Water Conservation <br />Board ("Secured Party") to the Hawkeye Lateral Ditch Company ("Debtor") pursuant to <br />Contract Encumbrance No. C153796, ("Loan Contract"), Debtor hereby assigns, transfers <br />and grants to Secured Party a security interest in the funds contained in Deposit Account No. <br />"70 I --I~ 9 '(the "Account") at Grand Valley National Bank, Fruita, <br />Colorado (Bank"), hereinafter referred to as the Collateral. Debtor warrants that the Account <br />has been established as a special deposit with the,funds deposited therein to be used solely <br />for repayment of the Loan to Secured Party. <br /> <br />The COllateral secures the payment and performance of all of Debtor's present and future, <br />direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") under the Loan Contract described <br />above and any amendments thereto. This Assignment is made solely to secure performance <br />of the Obligations and is made subject to the following terms, covenants and conditions: <br /> <br />1. This Assignment is effective upon signing and will remain in full force and effect until <br />Secured Party specifically tenminates the security interest in the Collateral in writing. <br />Secured Party is not required to release this Assignment until the Loan is paid in full. <br /> <br />2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw any <br />funds from the account listed above until the Secured Party releases this Assignment in <br />writing, except that, at Debtor's request, the Bank shall allow the transfer of the annual <br />Loan payment to Secured Party. <br /> <br />3. Debtor shall be in default under the Loan Contract for purposes of this Assignment upon <br />the occurrence of any of the following events or conditions: (a) failure or omission to make <br />any payment under the Loan Contract when due; (b) default in the payment or <br />performance of any obligation, covenant, agreement or liability contained or referred to in <br />the Loan Contract; (c) the making of any levy, seizure, or attachment on the Collateral; (d) <br />the Debtor becoming insolvent or unable to pay debts as they mature._$J'H::!Jred Party <br />shall give the Debtor written notice of any alleged default and an oppor:\Ur1ity1<)'(::ure within <br />thirty (30) days of receipt of such notice before Debtor shall be c<!.ri~~~d"n'-d!?faUl.t for <br />purposes of this Assignment. :: -,s //2' ...4... ~~. ','.'2, <br />(;Ti' to ..A. ~...~ '- )~~ <br />4. Upon or at any time after a default under the Loan Contract as d~f~~d4f} Par~raph 3 <br />above, Secured Party shall be entitled to notify the Bank to pay ~l;ed11artyttre. funds <br />contained in the Account. Secured Party shall apply such moneys fi& ~~'s~6ciated <br />with collection, including, but not limited to, reasonable attorney's fees~,.xt~,?utstanding <br />interest, and then to the principal sum of the Loan. '-<::.'"c.'_. <br /> <br />5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or <br />any interest therein as long as this Assignment is in effect. <br /> <br />6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under <br />this Assignment must be contained in a writing signed by Secured Party. A waiver on one <br />occasion shall not constitute a waiver on any other occasion. <br /> <br />Attachment 5 to Loan Contract C153796 Amendment No.1 <br />