SECURITY AGREEMENT
& DEPOSIT ACCOUNT CONTROL AGREEMENT
THIS AGREEMENT,
made effective this 16th day of August, 2006, by and among First
National Bank of Omaha (hereinafter called “SECURED
PARTY”), Red Trail Energy, LLC, a North Dakota limited
liability company (hereinafter called “DEBTOR”), and
Bremer Bank (“DEPOSITARY BANK”), a bank
organized under the laws of North Dakota, whose mailing address is
PO Box 352, Richardton, ND 58652.
1. DEBTOR
warrants that DEBTOR’s only place of business is the address
appearing following DEBTOR’s signatures. DEBTOR will promptly
notify SECURED PARTY, in writing, of any change in the location of
any place of business,; or the establishment of any new place of
business.
2. For
valuable consideration, receipt of which is hereby acknowledged,
DEBTOR hereby grants to the SECURED PARTY a security interest in
the following property (hereinafter called the
“COLLATERAL”).
A. A certain
deposit account numbered 8620810 in the name of DEBTOR, established
at DEPOSITARY BANK on behalf of DEBTOR. DEBTOR agrees to maintain a
minimum amount in the account but said account balance shall not
exceed Five Hundred Thousand Dollars ($500,000.00) at any time. If
said account balance exceeds Five Hundred Thousand Dollars
($500,000.00), DEBTOR shall transfer the excess funds to an account
established at the banking offices of SECURED PARTY.
B. Each and every
deposit account now or hereinafter identified to or becoming a part
of the account hereinabove set out, and all monies or funds now or
hereinafter identified to or becoming a part of said account above
set out.
3. The
COLLATERAL secures several Promissory Notes dated
December 16,2006, in the aggregate amount of Fifty Eight
Million Seven Hundred Eleven Thousand Seven Hundred Forty Dollars
($59,711,740.00), plus interest accruing thereon; and all prior,
contemporaneous and future debts owed to the SECURED PARTY by the
DEBTOR, whether Originally owned of transferred to the SECURED
PARTY.
4. DEBTOR
does hereby grant to the SECURED PARTY such control of the above
set out account and money which is a “deposit account”
within the meaning of the Nebraska Uniform Commercial Code
§9-l02(a)(29) and similar statutes which may govern any aspect
of this transaction.
