C150040 Contract

• Contract/PO #: C150040
• Contractor Name: Otero Ditch Company
• Contract Type: Loan
• Water District: 17
• County: Otero
• Bill Number: EIA
• Loan Projects - Doc Type: Contract Documents

ASSIGNMENT OF CERTIFICATE OF DEPOSIT

I n consideration of and as security for reimbursement for monies' owing under a loan from the
Colorado Water Conservation Board ("Lender") to Otero Ditch Company ("Owner") in the amount
of up to $155,000 ("Loan") pursuant to Contract Encumbrance Number C150040, ("Loan
Contract"), Owner hereby assigns to the Lender Certi c te D i No. ~ <\0).. <:; in
the amount of $8,963.67 ("Collateral") issued by !t .m!) ("Bank"). Owner
warrants that said Certificate of Deposit Account has been esta lished as a special deposit with
the funds deposited therein to be used solely to secure repayment of the Loan to Lender.

The Collateral secures the payment and performance of all of Owner's present and future, direct
or indirect, absolute and contingent, express and implied, indebtedness, Iiabilities,'obligations and
covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract described above
and any amendments thereto. This Assignment is made solely to secure performance of the
Obligations and is made subject to the following terms, covenants and conditions:

1. Owner shall deliver the original Certificate of Deposit to Lender upon the 'execution .of this ,
Assignment This Assignment shall continue until Lender specifically terminates' the security
interest in the Collateral in a writing signed by Lender. ~ ,

2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under the
Certificate of Deposit in the event of a default under the Obligations. The Lender shall apply
such monies first to costs associated with collection, including reasonable attorney's fees, next
to outstanding interest, and then to the principal sum of the Loan. In the event that Owner
possesses or receives possession of any instruments or other remittances with respect to the
Certificate of Deposit following the giving of such notification, Owner shall hold such
instruments and other remittances in trust for Lender apart from Owner's other property,
endorse the instruments and other remittances to Lender, and immediately provide Lender
with possession of the instruments and other remittances.

3. The Owner shall be in default under this Assignment upon the occurrence of any of the
following events or conditions: (a) failure or omission to make any payment under the Loan
Contract when due; (b) default in the payment or performance of any obligation, covenant,
agreement or liability contained or referred to in the Loan Contract; (c) the making of any levy,
seizure, or attachment on the Collateral; (d) the Owner becoming insolvent or unable to pay
debts as they mature. Th,e Lender shall give the Owner written notice of any alleged default
and an opportunity to cure within thirty (30) days of receipt of such notice before the
BORROWER shall be considered in default for purposes of this Assignment

4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on all
instruments and other remittances payable to Owner with respect to the Certificate of Deposit
This power of attorney is coupled with an interest and is irrevocable.

5. The modification or waiver of any of Owner's obligations or Lender's rights under this
Assignment must be contained in a writing signed by Lender. A waiver on one occasion shall
not constitute a waiver on any other occasion.

Appendix C to Loan Contract C150040