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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 <br />from the Colorado Water Conservation Board ("Lender") to The Wood Lake Mutual Water & <br />Irrigation Company ("Owner") in the amount of $458,000 ("Loan") pursuant to Contract <br />Encumbrance Number C15381 0, as amended ("Loan Contract"), Owner hereby assigns to the <br />Lender the following: Certificate of Deposit No. 01-00094588 in the amount of $10,544.47 and <br />Certificate of Deposit No. ()/oOOCflf3b/ in the amount of $15,143,66 ("Collateral") issued by <br />the Eaton Bank ("Bank"), <br /> <br />The Collateral secures the payment and performance of all of Owner's present and <br />future, direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract <br />'described above and any amendments thereto. This Assignment is made solely to secure <br />performance of the Obligations and is made subject to the following terms, covenants and <br />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, <br />next to outstanding interest, and then to the 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 <br />property, endorse the instruments and other remittances to Lender, and immediately provide <br />Lender 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 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 <br />levy, seizure, or attachment on the Collateral; (d) the Owner becoming insolvent or unable to <br />pay debts as they mature. <br /> <br />4. 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 <br />Deposit. 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 under this <br />Assignment must be contained in a writing signed by Lender. A waiver on one occasion <br />shall 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 /> <br />Exhibit 3 to Loan Contract C15381 0 Amendment No, 1 <br />