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<br />ASSIGNMENT OF CERTIFICATE OF DEPOSIT <br /> <br />In consideration of and as security for reirnbursement for moneys owing under a loan <br />from the Colorado Water Conservation Board ("Lender") to the Arkansas Groundwater <br />Users Association ("Owner") in the amount of $25,000 ("Loan") pursuant to Contract <br />Encumbrance Number C153800"Loan Contract"), Owner hereby assigns to the Lender <br />Certificate of Deposit No. 36932 in the amount of $3,000.00 ("Collateral") <br />issued by the Colorado East Bank and Trust, La Junta, Colorado ("Bank"). <br /> <br />The Collateral secures the payment and performance of all of Owner's present and <br />future, direct on Obligations and is made sLJbject to the following terms, covenants and <br />conditions: indirect, absolute and contingent, express and implied, indebtedness, <br />liabilities, obligations and covenant (cumulatively "Obligations") by Lender pursuant to <br />the Loan Contract described above and any amendments thereto. This Assignment is <br />made solely to secure performance of the Obligations and is made subject to the <br />following terms, convenants and conditions: <br /> <br />1. Owner shall deliver the original Certificate of Deposit to Lender upon the execution <br />of this Assignment. This Assignment shall continue until Lender specifically <br />terminates the security interest in the Collateral in a writing signed by Lender. <br /> <br />2. Lender shall be entitled to notify the Barlk to pay Lender any moneys owing Owner <br />under the Certificate of Deposit in the event of a default under the Obligations. The <br />Lender shall apply such moneys first to costs associated with collection, including <br />reasonable attorney's fees, next to outstanding interest, and then to the principal <br />sum of the Loan. In the event that Owner possesses or receives possession of any <br />instruments or other remittances with respect to the Certificate of Deposit following <br />the giving of such notification, Owner shall hold such instruments and other <br />remittances in trust for Lender apart from Owner's other property, endorse the <br />instruments and other remittances to Lender, and immediately provide Lender with <br />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 <br />the following events or conditions: (a) failure or omission to make any payment <br />under the Loan Contract when due; (b) default in the payment or performance of <br />any obligation, covenant, agreement or liability contained or referred to in the Loan <br />Contract; (c) the making of any levy, seizure, or attachment on the Collateral; (d) the <br />Owner becoming insolvent or unable to pay debts as they mature. <br /> <br />4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on <br />all instruments and other remittances payable to Owner with respect to the <br />Certificate of Deposit. This power of attorney is coupled with an interest and is <br />irrevocable. <br /> <br />5. The modification or waiver of any of Owner's obligations or Lender's rights under <br />this Assignment must be contained in a writing signed by Lender. A waiver on one <br /> <br />APPENDIX E TO LOAN CONTRACT C153800 <br />