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<br />for the DEBTOR in making, adjusting and settling claims under or canceling such insurance and endorsing the DEBTOR'S name on any
<br />drafts drawn by insurers of the COLLATERAL.
<br />
<br />UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL and use it in any lawful manner, and upon default SECURED
<br />PARTY shall have the immediate right to the possession of the COLLATERAl.
<br />
<br />DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the following events or conditions:
<br />
<br />(a) default in the payment or performance of any obligation, covenant or liability contained or referred to herein or in any
<br />note evidencing the same;
<br />
<br />(bl the making or furnishing of any warranty, representation or statement to SECURED PARTY by or on behalf of DEBTOR which
<br />proves to have been false in any material respect when made or furnished;
<br />
<br />(c) loss, theft, damage, destruction, sale or encumbrance to or of any of the COLLATERAL, or the ma'king of any levy seizure
<br />or attachment thereof or thereon;
<br />
<br />(d) death, dissolution, termination or existence, insolvency, business failure, appointment of a receiver of any part of the
<br />property of, assignment for the benefit of creditors by, or the commencement of any proceeding under any bankruptcy
<br />or insolvency law of, by or against DEBTOR or any guarantor or surety for DEBTOR.
<br />
<br />UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure, SECURED PARTY may declare all Obligations
<br />secured hereby immediately due and payable and shall have the remedies of a secured party under Articie 9 of the Colorado
<br />Uniform Commercial Code. SECURED PARTY may require DEBTOR to assemble the collateral and deliver or make it available to
<br />SECURED PARTY at a place to be designated by SECURED'pARTywhich is reasonably convenient to both parties. Expenses of retaking,
<br />holding, preparing for sale, selling or the like shall include SECURED PARTY'S reasonable attorney's fees and legal expenses.
<br />
<br />No waiver by SECURED PARTY of any default shall operate as a waiver of any other default or of the same default on a future
<br />occasion. The taking of this security agreement shall not waive or impair any other security said SECURED PARTY may have or
<br />hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such additional security waive or impair
<br />this security agreement; but said SECURED PARTY shall retain its rights of set-off against DEBTOR.
<br />
<br />All rights of SECURED PARTY hereunder shall inure to the benefit of its successors and assigns; and all promises and duties
<br />of DEBTOR shall bind its heirs, executors or administrators or its successors or assigns. If there be more than one DEBTOR, their
<br />liabilities hereunder shall be joint and several.
<br />
<br />Dated thisc;HS.f6day Of~, 1996.
<br />
<br />DEBTOR: Town of Johnstown Water
<br />Activity Enterprise
<br />
<br />By ,\ y;t~ 1.76-. fl/r.; A~
<br />~~"'~::4>T~.orr:r..flS J. Martinez, ~~
<br />
<br />';::).. '.<{'
<br />i 1i~ !e-Il~:
<br />. ~t.l' .:-~"/f.
<br />, ~.:,
<br />;;" ..~.. ,..-\..... .
<br />By J .~
<br />Diana Steele, Town Clerk
<br />
<br />SECURED PARTY: STATE OF COLORADO for
<br />the use and benefit of the Department of
<br />Natural Resources, Colorado Water
<br />Coo,","",;oo Boo,d ~
<br />
<br />~Ad~C M-
<br />
<br />ol- /'~es C. Lile, P.E., Director
<br />
<br />
<br />DEBTOR: Town of Johnstown
<br />
<br />B~:1~~'?t~; ~~
<br />
<br />/'~~., . .4IfJ i .
<br />,~~'~1;)~eai).~ .
<br />oJ ~,',j!r. -.J.
<br />1,,,::.:~,"{;1,.!...
<br />,~..,:.fff" ~
<br />'t'" ...~~,- ., .
<br />!:lV.......' <::t..KR
<br />'.~,v",o/'~, ~.pjana Steele, Town Clerk
<br />'-.
<br />
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