PROJC01644 - Laserfiche WebLink

Home Browse Search

SECURITY AGREEMENT DEBTOR: MANCOS WATER CONSERVANCY DISTRICT WATER ACTIVITY ENfERPRISE & MANCOS WATER CONSERVANCY DISTRICT 42888 County Road N Mancos, CO 81328 FED TAX ID # 84-0521460 SECURED PARTY: STATE OF COLORADO for the use and benefit of the Dept of Natural Resources, Colorado Water Conservation Board 1313 Sherman Street, Room 721 Denver, CO 80203 COLLATERAL CLASSIFICATION: CONTRACT RIGHTS & OTHER DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following property and any and all additions, accessions and substitutions tMreto or therefor, hereinafter called the COLLATERAL: All revenues derived from rates, fees and charges assessed and collected by the Mancos Water Conservancy District for the allotment and sale of water, as de9cribed in Pledge of Revenues Provisions in Contract #C153745 ("Contract"), which revenues the District shall deposit with the Mancos Water Conservancy District Water Activity Enterprise. To secure payment of the indebtedness evidenced by certain Promissory Note Provisions of Loan Contract #C153746 between the above named parties herewith, payable to the SECURED PARTY, or orde'r, as follows: $62,500 in accordance with the terms specified in the Promissory Note Provisions of said Contract, or until all principal and interest are paid in full. DEBTOR EXPRESSLY WARRANTS AND COVENANTS: 1. That except for the security interest granted hereby DEBTOR is. or to the extent that this agreement states that the COLLATERAL is to be acquired after the date hereof, will be, the owner of the COLLATERAL free from any adverse lien. security interest or encumbrances; and that DEBTOR will defend the COLLATERAL against all claims and demands of all persons at anytime claiming the same or anY interest therein. 1 . That the execution and delivery of this agreement by DEBTOR will not violate any law or agreement governing DEBTOR or to which DEBTOR is a party. 2. That. if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not prohibit any term or condition of this agreement. 3. Thal by its acceptance of the loan money pursuam 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 COLLATERA~. 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, ordinances, articles of incorporation or by-laws. UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps the COLLATERAL in Appendix B of Contract #C153745