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<br />r-~,. <br /> <br />STATE OF COLORADO. <br /> <br />UNIFORM COMMERCIAL CODE - SECURITY AGREEMENT & FINANCING STATEMENT <br />COLORADO SECRETARY OF STATE <br />1560 Broadway. Suite 200 - Denver. CO 8b202-5169 <br /> <br />DEBTOR: <br /> <br />APPLETON ML350 DITCH COMPANY, INC. <br />2327 H ROAD <br />Grand Junction, CO 81505 <br /> <br />~'62D432Q3 <br />SECRETAW{ <br /> <br />. _. . . <br />. .-. .... <br />',-, :f:1C,= U:J <br />,..,- ,...,........,..,... <br />;)1'" ;:1; n "- <br /> <br />FED TAX ID #84-1257543 <br /> <br />D6-D5-96 <br /> <br />.,;,t=. <br />....l.. ,_, <br /> <br />SECUREO PARTY: <br /> <br />ST A TE OF COLORADO for the use and benefit of <br />The Department of Natural Resources, Colorado Water Conservation Board <br />1313 Sherman Street, Room 721 <br />Denver, CO 80203 <br /> <br />COLLATERAL <br />CLASSIFICATION: <br /> <br />x <br /> <br />CONTRACT RIGHTS <br /> <br />x <br /> <br />OTHER <br /> <br />DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the fOllowing property and any and all additions, accessions <br />and substitutions thereto or therefor, hereinafter called the COLLATERAL: All revenues derNed from assessments an stock to repay the <br />indebtedness on the amount loaned to debtor by secured party, as described in Pledge of Reve es Provisions in Loan Contract and <br />Promissory Note #C15370B Dated 1PJ>r1wrlj J"3. 19~ and on DeDtor's Resolution dated 19~. <br /> <br />To secure payment of the indebtedness evidenced by certain Promissory Note Provisions of Loan Contract referenced above between the <br />above named parties herewith, payable to the SECURED PARTY, or order, as follows: $40,000 with interest at the rate of four percent (4%) <br />per annum payable in thirty (30) annual installments of $2,313.20, or until all principal and interest are paid in full, as more fully described <br />in above referenced Loan Contract and Promissory Nate. <br /> <br />OEBTOR EXPRESSLY WARRANTS ANO COVENANTS: <br /> <br />,. That except for the security interest granted hereby DEBTOR is. or to the extent tha, tr.:s agr!;ement states that the CO...:..;, ~ U1/," <br />is to be acquired after the date hereof, will be, the owner of the COLLATERAL free from any adverse lien, security interest or encumbrances; <br />and that DEBTOR will defend the COlLATERAL against alt claims and demands of all persons at anytime claiming the same or any interest <br />therein. <br /> <br />2. The COLLATERAL is used or bought primarily for; <br />Personal, family or household purposes; <br />_ Use in farming operations; <br />Use in business; <br />X Other. <br /> <br />3. That DEBTOR'S address is as stated above, and the COLLATERAL will be kept at SAME ADDRESS <br /> <br />4. If any of the COLLATERAL is crops, oil, gas or minerals to be extracted or timber to be cut, or goods which are or are to become <br />fixtures, said COLLATERAL concerns the 'following described real estate situate in the County of Mesa and State of Colorado, to-wit; N/A <br /> <br />5. Promptly to notify SECURED PARTY of any changes in the location of the COLLATERAL. <br /> <br />6. To pay all taxes and assessments of every nature which may be levied or assessed against the COLLATERAL. <br /> <br />7. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the COLLATERAL and not to permit the <br />same to be attached or replevined. <br /> <br />8. That the COLLATERAL is in good condition, and that the DEBTOR will, at its own expense, keep the same in good condition and from <br />time to time, forthwith, replace and repair all such parts of the collateral as may be broken, worn out, or damaged without allowing any lien <br />to be created upon the COLLATERAL on account of such replacement or repairs, and that the SECURED PARTY may examine and inspect the <br />COLLATERAL at any time, wherever located. <br /> <br />9. That the DEBTOR will not use the.CoLLATERAL'in violation of any applicable' s'tatutes, regul~~ions or l?rdina.ri~~~,. .. <br /> <br />APPENDIX C <br />