Farm Credit Services of
America
SECURITY AGREEMENT AND ASSIGNMENT
OF HEDGING ACCOUNT
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Debtors:
Siouxland Ethanol, LLC
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Customer No.:
138039
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WHEREAS, the
undersigned, Siouxland Ethanol, LLC hereinafter called
“Debtor”, whose address is Post Office Box 147,
Jackson, NE 68743-0147, carries an account (No. 29340) with FC
Stone as Broker, hereinafter called the “Broker”, whose
address is Post Office Box 4887, Des Moines, Iowa 50306 for trading
in commodities and contracts relating thereto;
WHEREAS, Debtor
is now and/or may hereafter become indebted to FARM CREDIT SERVICES
OF AMERICA, PCA, hereinafter called the “Secured
Party”, whose address is 5015 South 118
th Street, Omaha, NE 68137.
NOW, THEREFORE,
it is agreed by and between the parties hereto as
follows:
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1.
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Secured Party hereby may advance to
Debtor certain sums of money for the purpose of hedging
Debtor’s inventory of certain commodities. Debtor agrees to
deposit said sums in an account with Broker (“Account”)
and agrees to employ said funds for the sole purpose of making
hedging transactions to protect Debtor’s commodity inventory
and shall not employ said funds for transactions of speculation or
investment in commodities futures.
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2.
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To
secure payment and performance of Debtor’s obligations to
Secured Party, and for the payment of all monies which Secured
Party may hereafter loan or advance to Debtor, Debtor hereby grants
a security interest in and assigns and transfers to Secured Party
all funds which may hereafter accumulate or become withdrawable
from, or paid out of the Account, including any balance which may
remain to the credit of the Account upon the closing thereof;
subject, however, to the prior payment of all indebtedness of
Debtor to Broker, as such may exist from time to time, including
fees and commissions, which may have been incurred in connection
with Debtor’s transactions with Broker, and to Broker’s
lien, and the right of foreclosure thereof in connection with the
indebtedness of Debtor to Broker (including, but not limited to,
any right of Broker to close out open positions without prior
demand for additional margin and without prior notice).
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3.
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As
additional security for the obligations of Debtor to Secured Party,
and for the payment of all monies which Secured Party may hereafter
loan or advance to Debtor, Debtor hereby grants to Secured Party a
continuing security interest in and to all commodities futures
contracts which Broker transacts for Debtor and all proceeds
thereof; subject, however, to the prior payment of all indebtedness
of Debtor to Broker, as such may exist from time to time, including
fees and commissions, which may have been incurred in connection
with Debtor’s transactions with Broker, and to Broker’s
lien, and the right of foreclosure thereof in connection with any
indebtedness of Debtor to Broker (including, but not limited to,
any right of Broker to close out open positions without prior
demand for additional margin and without prior notice). Debtor
shall execute and deliver to Secured Party all financing statements
and other documents as Secured Party may reasonably request, in a
form satisfactory to Secured Party to perfect and maintain
perfected the security interests granted and assignments made by
Debtor to Secured Party in this Agreement.
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4.
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Broker is hereby authorized and
directed to pay to Secured Party upon Secured Party’s demand
all funds that may hereafter be withdrawable or payable out of the
Account, and Debtor agrees that
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