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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 <br />the Colorado Water Conservation Board ("Lellder") to The Consolidated Extension Canal <br />Company ("Owner") in the amount of $300,000 ("Loan") pursuant to Contract Encumbrance <br />Number C15374 7, ("Loan Contract/Promissory Note"), Owner hereby assigns to the Lender the <br />following Certificate of Deposit and all prinCipal, (interest and other proceedS) therefrom <br />(cumulati"ely"Collateral"): Certificate of Deposit No. 6'-1 j ~5 in the amount of <br />$16,826.29 issued by the First National Bank of las Animas("Bank") and maturing on ~"~ <br />z I 1'1'11 . <br />. <br /> <br />The Collateral secures the payment and performance of all of Owner's present and future, <br />direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan <br />Contract/Promissory Note described above and any amendments thereto. This Assignment is <br />made solely to secure performance of the Obligations and is made subject to the following <br />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 C:Ollection, including reasonable attorney's fees, <br />next to outstanding interest, and then to th~ principal sum of the Loan. In the event that <br />Owner possesses or receives possession of any instruments or other remittances with <br />respect to the Certificate of Deposit following the giving of such notification, Owner shall hold <br />such 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 Owner shall 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/Promissory Note when due; (b) default in the payment or performance of any <br />obligation, covenant, agreement or liability contained or referred to in the Loan <br />Contract/Promissory Note; (c) the making of any levy, seizure, or attachment on the <br />Collateral; (d) the Owner becoming insolvent or unable to pay debts as they mature. <br /> <br />4. Owner hereby appoints Lender as its attomey-in-fact to endorse Owner's name on all <br />instruments and other remittances payable to Owner with respect to the Certificate of <br />Deposit. This power of attorney is coupled with an interest and is irrevocable. <br /> <br />5. The modification or waiver of any of OWIler's obligations or Lender's rights under this <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 />Ann~nrliy C to Contr~d #C1537A.7 <br />