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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 from the <br />Colorado Water Conservation Board (Lender) to the Buffalo Mutual Irrigation Company <br />(Owner) in the amount of $382,250 (Loan) pursuant to Contract Encumbrance Number <br />C153793 as amended (Loan Contract), Owner hereby assigns to the Lender Certificate of <br />Deposit No. 36073 in the amount of $21,439,19 ("Collateral") issued by Colorado <br />East Bank and Trust ("Bank"). ':"1, '-iu.c. en <br />. . .,' 1 ., <br />The Collateral secures the payment and performance of all of Owner's presen(and future, <br />direct or indirect, absolute and contingent, express and implied, indebtE;lSlness, liabilities,' <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to . the Lbari~ <br />Contract described above and any amendments thereto, This Assignmen(js inade soleTy to:' <br />secure performance of the Obligations and is made subject to the following'term's;'covenants <br />and conditions: ,.,f'''~ '. ,",<".,:,.' <br />',' ..;" , <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 <br />security 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 <br />the Certificate of Deposit in the event of a default under the Obligations. The Lender shall <br />apply such monies first to costs associated with collection, including reasonable <br />attorney's fees, next to outstanding interest, and then to the principal sum of the Loan. In <br />the event that Owner possesses or receives possession of any instruments or other <br />remittances with respect to the Certificate of Deposit following the giving of such <br />notification, Owner shall hold such instruments and other remittances in trust for Lender <br />apart from Owner's other property, endorse the instruments and other remittances to <br />Lender, and immediately provide Lender with possession of the instruments and other <br />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 <br />Loan Contract when due; (b) default in the payment or performance of any obligation, <br />covenant, agreement or liability contained or referred to in the Loan Contract; (c) the <br />making of any levy, seizure, or attachment on the Collateral; (d) the Owner becoming <br />insolvent or unable to 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 <br />other rights the Lender may have under the Loan Contract or any law. <br /> <br />Exhibit 3 to Loan Contract C153793 Amendment 1 <br /> <br />.' <br />