C150081 Contract

• Contract/PO #: C150081
• Contractor Name: Victor, City of
• Contract Type: Loan
• Water District: 12
• County: Teller
• Bill Number: HB 95-1155
• Loan Projects - Doc Type: Contract Documents

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3. That, by its acceptance of the loan money pursuant to the terms of the
CONTRACT and by its representations herein, DEBTOR shall be estopped from
asserting for any reason that it is not authorized to grant a security interest in the
COLLATERAL pursuant to the terms of this agreement,

4. To pay all taxes and assessments of every nature which may be levied or assessed
against the COLLATERAL.

5, To not permit or allow any adverse lien, security interest or encumbrance whatsoever
upon the COLLATERAL and not to permit the same to be attached or replevined.

6. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes,
regulations or ordinances, articles of incorporation or by-laws,

DEBTOR SHALL BE IN DEFAULT under this agreement upon the happeriing of any of
the following events or conditions:

1. default in the payment or performance of any obligation, covenant or liability
contained or referred to herein or in the CONTRACT;

2, the making or furnishing of any warranty, representation or statement to
SECURED PARTY by or on behalf of DEBTOR which proves to have been false
in any material respect when made or furnished;

3. loss, theft, sale or encumbrance of any of the COLLATERAL, or the making of
any levy, seizure or attachment thereof or thereon;

4. dissolution, termination of existence, insolvency, business failure, appointment
of a receiver of any part of the property of, aSSignment for the benefit of
creditors by, or the commencement of any proceeding under any bankruptcy or
insolvency law of, by or against DEBTOR or any guarantor or surety for
DEBTOR.

UPON SUCH DEFAULT and at any time thereafter, SECURED PARTY may declare all
Obligations secured hereby immediately due and payable and shall have the remedies of a
secured party under Article 9 of the Colorado Uniform Commercial Code. In addition, upon
default, SECURED PARTY shall have the right to transfer the COLLATERAL to and register
the COLLATERAL in the name of the SECURED PARTY, and whether or not so transferred
and registered, to receive the income, dividends and other distributions thereon and apply
them to repayment of the loan. Expenses of retaking, holding, preparing for sale, selling or the
like shall include SECURED PARTY'S reasonable attorney's fees and legal expenses.
SECtJREO PARTY shall give DEBTOR written notice of any alleged default and an opportunity
to cure within thirty (30) days of receipt of such notice before DEBTOR shall be considered in
default for purposes of this agreement.

No default shall be waived by SECURED PARTY except in writing, and no waiver by
SECURED PARTY of any default shall operate as a waiver of any other default or of the same
default on a future occasion The taking of this security agreement shall not waive or impair any
other security said SECURED PARTY my have or hereafter acquire for the payment of the
above indebtedness, nor shall the taking of any such additional security waive or impair this