COLLATERAL
ASSIGNMENT
OF MONEYS DUE OR TO BECOME
DUE
UNDER
PROMISSORY NOTE
For value
received and as collateral security for repayment of any and all
indebtedness of CORNING NATURAL GAS CORPORATION (herein, "CNG") now
existing or hereafter arising owing to COMMUNITY BANK, N.A.
(herein, the "Bank"), including, without limitation, all amounts
advanced or re-advanced by the Bank to CNG pursuant to a $5,600,000
Line of Credit (Loan #4280406 0101) and/or a $1,000,000 Line of
Credit (Loan #4280406 0501), CORNING NATURAL GAS APPLIANCE
CORPORATION, the undersigned, hereby assigns to COMMUNITY BANK,
N.A., having offices located at 240 South Hamilton Street, Painted
Post, New York 14870, all moneys now due or after this date to
become due to the undersigned under that certain Promissory Note
dated September 15, 2003 in the original principal amount of
$600,000.00 (the "Note") made and given in favor of the undersigned
corporation by CORNING APPLIANCE CORPORATION, obligor, to the
extent of the full amount of principal and interest thereof, all in
connection with CNG&s purchase of natural gas supplies in the
ordinary course of its operations.
The undersigned
corporation warrants that: there has occurred no Event of Default
as defined in the Note; all installment payments of principal and
interest heretofore falling due under the Note have been paid; said
Note has not previously been assigned otherwise than to the Bank as
collateral security for repayment of certain other indebtedness
owing by the assignor to the Bank, nor has it been encumbered in
any way; and the unpaid remaining principal balance owing under the
Note as of the date hereof is $ 497, 615.00 . The
undersigned furthermore acknowledges and represents that
reactivation by the Bank, concurrently with the delivery of this
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