C153719 Contract

• Contract/PO #: C153719
• Contractor Name: Johnstown, Town of
• Contract Type: Loan
• Water District: 13
• County: Larimer
• County: Weld
• Bill Number: SB 94-029
• Loan Projects - Doc Type: Contract Documents

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ASSIGNMENT OF CERTIFICATE OF DEPOSIT

In consideration of and as security for reimbursement for monies owing under a loan
from the Colorado Water Conservation Buard ('Lender') in an :unount not to exceed
$2,542,500 ("Loan") pursuant to Contract Encrunbrance Number C153719, ("Loan
ContractiPromissory Note"), the Town of JohnstOwn ("Owner"), acting by and through the
To\\n of Johnstown Water Activity Enterprise, hereby assigns to the Lender all of its right,
title and interest in and to $147,033.03(hereinafier "Collateral") contained in Certifi~ate d
Deposit No. 'd~ - 'qS issued by the First National Bank of Johnstown ("Bank") and
maturing on k5 '1 7 .
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The Collateral secures the payment and performance of all of Owner's present and future,
direct or indirect, absolute aDd contingent, express and implied, indebtedness, liabilities,
obliglltions and covenant~ (cwnulatively "Ob!iglltions") by Lender pursuant to the Loan
Contract/Promissory Note described above and any amendments rhereto. This Assignment
is made solely to secure performance of the Obligations and is made subject to ttle following
terms, covenants and conditions:

1. Owner shall deliver the original Certiticate of Deposit to Lender upon the execution
of this Assignment. This Assignment shall ,ontinue until Lender specifically terminates the
security interest in the Collateral in a \\71ting signed by Lender.

2. Lender shall be entitled to notify the Bank to pay Lender up to $147,033.03 of the
monies owing Owner under the Certificate of Deposit in the event of a default under the
Obligations. The Lender shall apply such monies first to costs associated with collection,
inclUding reasonable attorney's fees. next to out5tanding interest, and then to the principal
sum of the Loan. In the event that Owner possesses or receives possession of any
instruments or other remittances with respect to the Certificate of Deposit following the
giving of such notification, Owner shall hold such instruments and other remittances in trust
for Lender apart from Owner's other property, endorse the instruments and other
remittances to Lender, and immediately provide Lender wit'l possession of the instruments
and other remittances.

3. The Owner shall be in default under this Assigmnent upon the occurrence of any of
the following events or conditions: (a) failure or omission to make any payment under the
Loan Contract/Promissory Note when due; (b) default in the payment or perfonnance of any
obligation, covenant, agreement or liability contained or referred to in the Loan
Contract/Promissory Note; Ce) the making of any levy, seizure, or attachment on the
Collateral; Cd) the Owner becoming insolvent or unable to pay debts as they mature.

4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on
all instruments and other remittances payable to Owner with respect to the Certificate of
Deposit. This power of attorney is coupled with an interest and is irrevocable.

ApPENDIX 6 TO CONTRACT #C 153719