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<br />DEED OF TRUST
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<br />This indenture, made this /)0 day of :rv1." 1998, between the Horse
<br />Creek Water Users Association, whose addre~unty Road 2B, Rush, CO
<br />80833, hereinafter referred. to as GRANTOR, and the Public Trustee of the County of
<br />Crowley, State of Colorado, hereinafter referred to as PUBLIC TRUSTEE,
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<br />Witnesseth, that whereas, GRANTOR has executed a Promissory Note, which is a
<br />part of Loan Contract #C153771 (the Contract), for a loan in the principal sum of
<br />$825,000.00 to be repaid to the State of Colorado for the use and benefit of the Department
<br />of Natural Resources, Water Conservation Board, whose address is 1313 Sherman Street,
<br />Room 721, Denver, Colorado 80203, with interest thereon from the date of first
<br />disbursement of funds under the Contract payable in 40 annual installments, in accordance
<br />with the terms of the Promissory Note, or until loan is paid in full.
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<br />And whereas, the GRANTOR is desirous of securing payment of the principal and
<br />interest of said promissory note to the State of Colorado.
<br />Now, therefore, the GRANTOR, in consideration of the premises and for the purpose
<br />aforesaid, does hereby grant, bargain, sell and convey unto the said PUBLIC TRUSTEE in trust
<br />forever, to wit: 35 c.f.s. out of the 60 cubic feet of water per second of time decreed to Box
<br />Springs Canal No.1, with an appropriation date of October 24, 1899, and an adjudication
<br />date of August 30, 1922, as adjudicated in the District Court for the County of Bent and the
<br />State of Colorado, which water rights historically have been diverted from Horse Creek at a
<br />point of diversion on the right bank, decreed to be located whence the Southwest corner of
<br />Section 20, Township 18 South, Range 56 West of the Sixth P.M., bears South 310 35'
<br />West 2960 feet, said point of diversion located in what is now known as Crowley County,
<br />which was split off from Otero County, in which the point of diversion was decreed to be
<br />located (collectively or hereinafter referred to as the "Property").
<br />To have and to hold the same, together with all and singular the privileges and
<br />appurtenances thereunto belonging: In Trust nevertheless, that in case of default in the
<br />payment of said note, or any part thereof, or in the payment of the interest thereon,
<br />according to the tenor and effect of said note or in the payment of any prior encumbrances,
<br />principal or interest, if any, or in case default shall be made in or in case of violation or
<br />breach of any of the terms, conditions, covenants or agreements contained in the Contract,
<br />the beneficiary hereunder may declare a violation of any of the covenants contained in the
<br />Contract and elect to advertise said Property for sale, and demand such sale by filing a
<br />notice of such election and demand for sale with the PUBLIC TRUSTEE. Upon receipt of such
<br />notice of electioh and demand for sale, the PUBLIC TRUSTEE shall cause a copy of the same
<br />to be recorded in the recorder's office of the county in which said Property is situated, it
<br />shall and may be lawful for the PUBLIC TRUSTEE to sell and dispose of the same (en masse
<br />or in separate parcels, as the said PUBLIC TRUSTEE may think best), and all the right, title
<br />and interest of the GRANTOR, its successors or assigns therein, at public auction at such
<br />time and at such location as shall be designated in the PUBLIC TRUSTEE'S Notice of Sale, for
<br />the highest and best price the same will bring in cash, four weeks public notice having been
<br />previously given of the time and place of such sale, advertisement once each week for five
<br />consecutive weeks, in some newspaper of general circulation at that time published in said
<br />County of Crowley, a copy of which notice shall be mailed within ten days from the date of
<br />the first publication thereof to the GRANTOR at the address herein given and .to such person
<br />or persons appearing to have acquired a subsequent record interest in said Property at the
<br />address given in the recorded instrument; where only the county and state is given as the
<br />address then such notice shall be mailed to the county seat, and to make and give to the
<br />purchaser of the Property at such sale, a certificate in writing describing the Property
<br />purchased, and the sum paid therefor, and the time when the purchaser (or other person
<br />entitled thereto) shall be entitled to the deed therefor, unless the same shall be redeemed
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<br />Appendix 6 to Loan Contract C153771
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