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<br />ASSIGNMENT OF CERTIFICATE OF DEPOSIT <br /> <br />In consideration of and as security for reimbursement for monies owing under a loan from the <br />Colorado Water Conservation Board C'Lender") to the Town of Johnstown acting by and through <br />the Town of Johnstown Water Activity Enterprise ("Owner") in the amount of $1,948,932,60 <br />("Loan") pursuant to Contract Encumbrance Number C153719, as amended, ("Loan Contract"), <br />Owner hereby assigns to the Lender Certificate of Deposit No, 8500269 in the amount of <br />$112,706.97 ("Collateral") issued by Union Colony Bank, Johnstown, Colorado C'Bank"), Owner <br />warrants that said Certificate of Deposit Account has been established as a special deposit with <br />the funds deposited therein to be used solely to secure repayment of the Loan to Lender. <br /> <br />The Collateral secures the payment and performance of all of Owner's present and future, direct <br />or indirect, absolute and contingent, express and implied, indebtedness, liabilities, obligations and <br />covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract described above <br />and any amendments thereto, This Assignment is made solely to secure performance of the <br />Obligations and is made subject to the following terms, covenants and conditions: <br /> <br />1. Owner shall deliver the original Certificate of Deposit to Lender upon the execution of this <br />Assignment. This Assignment shall continue until Lender specifically terminates the security <br />interest in the Collateral in a writing signed by Lender, <br /> <br />2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under the <br />Certificate of Deposit in the event of a default under the Obligations, The Lender shall apply <br />such monies first to costs associated with collection, including reasonable attorney's fees, next <br />to outstanding interest, and then to the principal sum of the Loan, In the event that Owner <br />possesses or receives possession of any instruments or other remittances with respect to the <br />Certificate of Deposit following the giving of such notification, Owner shall hold such <br />instruments and other remittances in trust for Lender apart from Owner's other property, <br />endorse the instruments and other remittances to Lender, and immediately provide Lender <br />with possession of the instruments and other remittances. <br /> <br />3. The O'Nr3r sha'l be in default under this Assignment upon the occurrence of any of the <br />following events or conditions: (a) failure or omission to make any payment under the Loan <br />Contract when due; (b) default in the payment or performance of any obligation, covenant, <br />agreement or liability contained or referred to in the Loan Contract; (c) the making of any levy, <br />seizure, or attachment on the Coliateral; (d) the Owner becoming insolvent or unable to pay <br />debts as they mature, The Lender shall give the Owner written notice of any alleged default <br />and an opportunity to cure within thirty (30) days of receipt of such notice before the <br />BORROWER shall be considered in default for purposes of this Assignment. <br /> <br />" Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on all <br />instruments and other remittances payable to Owner with respect to the Certificate of Deposit. <br />This power of attorney is coupled with an interest and is irrevocable, <br /> <br />5. The modification or waiver of any of Owner's obligations or Lender's rights un :'3' ':--:s <br />Assignment must be contained in a writing signed by Lender, A waiver on one occasion shall <br />not constitute a waiver on any other occasion, <br /> <br />6, The rights and remedies of the Lender stated in this Assignment are in addition to any other <br />rights the Lender may have under the Loan Contract or any law, <br /> <br />Exhibit C to Loan Contract C153719 Amendment No.1 <br />