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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 <br />from the Colorado Water Conservation Board ("Lender") to the Mancos Water Conservancy <br />District Water Activity Enterprise in the amount of $62,500 ("Loan") pursuant to Contract <br />Encumbrance Number C153746, ("Loan Contract/Promissory Note"). the Mancos Water <br />Conservancy District Water Activity Enterprise ("Owner") hereby assigns to the Lender the <br />following Certificate of Deposit and all principal, interest and other proceeds therefrom <br />(cumulatively "Collateral"): Certificate of Deposit No. 17606 in the amount of $4,397.57 <br />issued by Mancos Valley Bank("Bank") and maturing on 12-11-2001, <br /> <br />The Collateral secures the payment and performance of all of Owner's present and future, <br />direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan <br />Contract/Promissory Note described above and any amendments thereto. This Assignment <br />is made solely to secure performance of the Obligations and is made subject to the <br />following terms, covenants and conditions: <br /> <br />1 . Owner shall deliver the original Certificate of Deposit to Lender upon the execution of <br />this Assignment. This Assignment shall continue until Lender specifically terminates the <br />security interest in the Collateral in a writing $igned by Lender. <br /> <br />2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner <br />under the Certificate of Deposit in the event of a default under the Obligations. The Lender <br />shall 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 Loan <br />Contract/Promissory Note when due; (b) default in the payment or performance of any <br />obligation, covenant, agreement or liability contained or referred to in the Loan <br />Contract/Promissory Note; (c) the making of any levy, seizure, or attachment on the <br />Collateral; (d) the Owner or the Mancos Water Conservancy District becoming insolvent or <br />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 />Appendix C to Contract #C153746 <br />