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<br />" <br /> <br />CONDITIONAL ASSIGNMENT OF CONTRACT PROCEEDS <br /> <br />In consideration of and as security for reimbursement for monies owing under <br />a loan from the Colorado Water Conservation Board ("Assignee") in the amount of <br />$100,000 ("Loan") pursuant to Contract Encumbrance Number C153717, ("Loan <br />Contract"), the South Platte Ditch Company ("Assignor") hereby conditionally assigns <br />and transfers to the Assignee, for its use and benefit, all of the Assignor's right, title <br />and interest in and to any and all monies due, or which may become due, on the sale <br />of recharge water to the Groundwater Appropriators of the South Platte River <br />("GASP") pursuant to an Agreement between the Company and GASP executed <br />March 20, 1975 ("GASP Agreement"), attached hereto and incorporated herein (such <br />monies hereinafter referred to as "GASP monies"). This Assignment shall take effect <br />only if and when the Assignor is considered in default under the Loan Contract as <br />provided below. This Assignment is made solely to secure payment of the Loan and <br />is made subject to the following terms, covenants and conditions: <br /> <br />1 . This Assignment shall take effect only if and when the Assignor is considered <br />in default under the Loan Contract, and in that event the Assignment will remain in <br />full force and effect until the Assignee releases it in writing'-- In' the event the <br />Assignment becomes effective, the Assignee shall release this Assignment when the <br />Loan is paid in full. <br /> <br />2. The Assignor shall be considered in default under the Loan Contract for purposes <br />of this Assignment upon the occurrence of any of the following events or conditions: <br />(a) failure or omission to make any payment under the Loan Contract when due; (b) <br />default in the payment or performance of any obligation, covenant, or agreement <br />contained in the Loan Contract; (c) the making of any levy, seizure, or attachment on <br />the GASP monies by any third party; (d) the Assignor becoming insolvent or unable <br />to pay debts as they mature. The Assignee shall give the Assignor written notice of <br />any alleged default and an opportunity to cure within thirty (30) days of receipt of <br />such notice before Assignor shall be considered in default for purposes of this <br />Assignment. <br /> <br />3. So long as there shall exist no default by the Assignor in the payment of the <br />principal sum and interest secured hereby, or in the performance of any obligation, <br />covenant or agreement contained in the Loan Contract, this Assignment shall not take <br />effect and the Assignor shall retain the sole right to collect all GASP monies. <br /> <br />4. Upon or at any time after default in the payment of the principal sum and <br />interest secured hereby, or in the performance of any obligation, covenant or <br />agreement contained in the Loan Contract, the Assignee, without in any way waiving <br />such default, may, upon notice in writing to GASP and the Assignor, demand, collect <br />and receive all GASP monies to the extent required to satisfy the Assignor's <br />obligations under the loan contract. Upon receipt of such notice, the Assignor shall <br />notify GASP of the Assignee's exercise of this right. The Assignee shall apply such <br />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. <br /> <br />APPENDIX C <br />