**Exhibit 10.17****ASSIGNMENT OF DEPOSIT ACCOUNT**               **Principal** **Loan Date** **Maturity** **Loan No** Call / Coll **Account** **Officer** **Initials****$3,517,572.00** **03-23-2007** **03-23-2008** **3787** 2200   **242**  References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “***” has been omitted due to text length limitations.         **Borrower:** **Homeland Energy Solutions, LLC (TIN:**   **Lender:** **Home Federal Savings Bank**  **48-1200438)**     **Business Banking**  **106 W Main, PO Box C**     **1016 Civic Center Dr NW Suite 300**  **Riceville, IA 50466**     **Rochester, MN 55901****THIS ASSIGNMENT OF DEPOSIT ACCOUNT dated March 23, 2007, is made and executed between HomelandEnergy Solutions, LLC (“Grantor”) and Home Federal Savings Bank (“Lender”).****ASSIGNMENT.**For valuable consideration, Grantor assigns and grants to Lender a security interestin the Collateral, including without limitation the deposit accounts described below, to securethe Indebtedness and agrees that Lender shall have the rights stated in this Agreement withrespect to the Collateral, in addition to all other rights which Lender may have by law,**COLLATERAL DESCRIPTION.**The word “Collateral” means the following described deposit account(“Account”):**CD Account Number 520655 with State Bank of Lawler with an approximate balance of $614,000.00**together with (A) all interest, whether now accrued or hereafter accruing; (B) all additionaldeposits hereafter made to the Account; (C) any and all proceeds from the Account; and (D) allrenewals, replacements and substitutions for any of the foregoing.In addition, the word “Collateral” includes all of Grantor’s property (however owned if owned bymore than one person or entity), in Lender’s possession (or in the possession of a third partysubject to Lender’s control), whether existing now or later and whether tangible or intangiblein character, including without limitation each and all of the following:**(A) All property to which Lender acquires title or documents of title.****(B) All property assigned to Lender.****(C) All promissory notes, bills of exchange, stock certificates, bonds, savings passbooks,time certificates of deposit, insurance policies, and all other Instruments and evidences ofan obligation,****(D) All records relating to any of the property described In this Collateral section, whetherin the form of writing, microfilm, microfiche, or electronic media.****CROSS-COLLATERALIZATION.**In addition to the Note, this Agreement secures all obligations, debtsand liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, aswell as all claims by Lender against Grantor or any one or more of them, whether now existing orhereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary orotherwise, whether due or not due, direct or indirect, determined or undetermined, absolute orcontingent, liquidated or unliquidated, whether Grantor may be liable individually or jointlywith others, whether obligated as guarantor, surety, accommodation party or otherwise, andwhether recovery upon such amounts may be or hereafter may become barred by any statute oflimitations, and whether the obligation to repay such amounts may be or hereafter may becomeotherwise unenforceable.**RIGHT OF SETOFF.**To the extent permitted by applicable law, Lender reserves a right of setoff inall Grantor’s accounts with Lender (whether checking, savings, or some other account). Thisincludes all accounts Grantor holds jointly with someone else and all accounts Grantor may openin the future. However, this does not include any IRA or Keogh accounts, or any trust accountsfor which setoff would be prohibited by law. Grantor authorizes Lender, to the extent permittedby applicable law, to charge or setoff all sums owing on the Indebtedness against any and allsuch accounts.**GRANTOR’S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL.**With respect tothe Collateral, Grantor represents and promises to Lender that:**Ownership.**Grantor is the lawful owner of the Collateral free and clear of all loans, liens,encumbrances, and claims except as disclosed to and accepted by Lender in writing.**Right to Grant Security Interest.**Grantor has the full right, power, and authority to enterinto this Agreement and to assign the Collateral to Lender.**No Prior Assignment.**Grantor has not previously granted a security interest in the Collateralto any other creditor.**No Further Transfer.**Grantor shall not sell, assign, encumber, or otherwise dispose of anyof Grantor’s rights in the Collateral except as provided in this Agreement.**No Defaults.**There are no defaults relating to the Collateral, and there are no offsets orcounterclaims to the same. Grantor will strictly and promptly do everything required ofGrantor under the terms, conditions, promises, and agreements contained in or relating tothe Collateral.**Notice to Third Party Issuer.**With regard to any certificates of deposit or similarCollateral for which Lender is not the issuer, Grantor agrees to notify the issuer orobligor of the interests hereby granted to Lender and to obtain from such issuer or obligor(a) acknowledgment of the interests in favor of Lender, and (b) the issuer’s or obligor’sagreement to waive in favor of Lender any and all rights of set-off or similar rights orremedies to which issuer or obligor may be entitled. Grantor further agrees, in connectiontherewith, to execute and cause the issuer or obligor to execute any and allacknowledgments, waivers and other agreements in such form and upon such terms as Lender mayrequest.**Proceeds.**Any and all replacement or renewal certificates, instruments, or other benefits orproceeds related to the Collateral that are received by Grantor shall be held by Grantor intrust for Lender and immediately shall be delivered by Grantor to Lender to be held as partof the Collateral.**Validity; Binding Effect.**This Agreement is binding upon Grantor and Grantor’s successorsand assigns and is legally enforceable inaccordance with its terms.
 
 

 
**ASSIGNMENT OF DEPOSIT ACCOUNT****Loan No: 3787** **(Continued)** **Page 2****Financing Statements.**Grantor authorizes Lender to file a UGC financing statement, oralternatively, a copy of this Agreement to perfect Lender’s security interest. At Lender’srequest, Grantor additionally agrees to sign all other documents that are necessary toperfect, protect, and continue Lender’s security interest in the Property. This includesmaking sure Lender is shown as the first and only security interest holder on the titlecovering the Property. Grantor will pay all filing fees, title transfer fees, and other feesand costs involved unless prohibited by law or unless Lender is required by law to pay suchfees and costs. Grantor irrevocably appoints Lender to execute documents necessary totransfer title if there is a default. Lender may file a copy of this Agreement as afinancing statement. If Grantor changes Grantor’s name or address, or the name or address ofany person granting a security interest under this Agreement changes, Grantor will promptlynotify the Lender of such change.**LENDER’S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL.**While this Agreement is in effect,Lender may retain the rights to possession of the Collateral, together with any and all evidence ofthe Collateral, such as certificates or passbooks. Lender may notify the institution which issuedthe Collateral of this Agreement. Grantor agrees that such institution will not pay any amount onthe Collateral, other than to Lender, so long as this Agreement is in effect. This Agreement willremain in effect until (a) there no longer is any Indebtedness owing to Lender; (b) allother obligations secured by this Agreement have been fulfilled; and (c) Grantor, in writing, hasrequested from Lender a release of this Agreement.**LENDER’S EXPENDITURES.**If any action or proceeding is commenced that would materially affectLender’s interest in the Collateral or if Grantor fails to comply with any provision of thisAgreement or any Related Documents, including but not limited to Grantor’s failure to dischargeor pay when due any amounts Grantor is required to discharge or pay under this Agreement or anyRelated Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any actionthat Lender deems appropriate, including but not limited to discharging or paying all taxes,liens, security interests, encumbrances and other claims, at any time levied or placed on theCollateral and paying all costs for insuring, maintaining and preserving the Collateral. All suchexpenditures incurred or paid by Lender for such purposes will then bear interest at the ratecharged under the Note from the date incurred or paid by Lender to the date of repayment byGrantor. All such expenses will become a part of the Indebtedness and, at Lender’s option, will(A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and bepayable with any installment payments to become due during either (1) the term of any applicableinsurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon paymentwhich will be due and payable at the Note’s maturity. The Agreement also will secure payment ofthese amounts, Such right shall be in addition to all other rights and remedies to which Lendermay be entitled upon Default.**LIMITATIONS ON OBLIGATIONS OF LENDER.**Lender shall use ordinary reasonable care in the physicalpreservation and custody of any certificate or passbook for the Collateral but shall have noother obligation to protect the Collateral or its value, In particular, but without limitation,Lender shall have no responsibility (A) for the collection or protection of any income on theCollateral; (B) for the preservation of rights against issuers of the Collateral or against thirdpersons; (C) for ascertaining any maturities, conversions, exchanges, offers, tenders, or similarmatters relating to the Collateral; nor ID) for informing the Grantor about any of the above,whether or not Lender has or is deemed to have knowledge of such matters.**DEFAULT.**Each of the following shall constitute an Event ofDefault under this Agreement:**Payment Default.**Grantor fails to make any payment when dueunder the Indebtedness.**Other Defaults.**Grantor fails to comply with or to perform any other term, obligation,covenant or condition contained in this Agreement or in any of the Related Documents or tocomply with or to perform any term, obligation, covenant or condition contained in any otheragreement between Lender and Grantor,**Default in Favor of Third Parties,**Should Grantor or any Grantor default under any loan,extension of credit, security agreement, purchase or sales agreement, or any other agreement,in favor of any other creditor or person that may materially affect any of Grantor’s propertyor Grantor’s or any Grantor’s ability to repay the Indebtedness or perform their respectiveobligations under this Agreement or any of the Related Documents.**False Statements.**Any warranty, representation or statement made or furnished to Lender byGrantor or on Grantor’s behalf under this Agreement or the Related Documents is false ormisleading in any material respect, either now or at the time made or furnished or becomesfalse or misleading at any time thereafter.**Defective Collateralization.**This Agreement or any of the Related Documents ceases to be infull force and effect (including failure of any collateral document to create a valid andperfected security interest or lien) at any time and for any reason.**Insolvency.**The dissolution of Grantor (regardless of whether election to continue is made),any member withdraws from the limited liability company, or any other termination ofGrantor’s existence as a going business or the death of any member, the insolvency ofGrantor, the appointment of a receiver for any part of Grantor’s property, any assignment forthe benefit of creditors, any type of creditor workout, or the commencement of any proceedingunder any bankruptcy or insolvency laws by or against Grantor.**Creditor or Forfeiture Proceedings.**Commencement of foreclosure or forfeiture proceedings,whether by judicial proceeding, self-help, repossession or any other method, by any creditorof Grantor or by any governmental agency against any collateral securing the Indebtedness.This includes a garnishment of any of Grantor’s accounts, including deposit accounts, withLender. However, this Event of Default shall not apply if there is a good faith dispute byGrantor as to the validity or reasonableness of the claim which is the basis of the creditoror forfeiture proceeding and if Grantor gives Lender written notice of the creditor orforfeiture proceeding and deposits with Lender monies or a surety bond for the creditor orforfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being anadequate reserve or bond for the dispute.**Events Affecting Guarantor.**Any of the preceding events occurs with respect to any guarantor,endorser, surety, or accommodation party of any of the Indebtedness or guarantor, endorser,surety, or accommodation party dies or becomes incompetent or revokes or disputes thevalidity of, or liability under, any Guaranty of the Indebtedness.**Adverse Change.**A material adverse change occurs in Grantor’s financial condition, or Lenderbelieves the prospect of payment or performance of the Indebtedness is impaired.**Insecurity.**Lender in good faith believes itself insecure.
 
 

 
**ASSIGNMENT OF DEPOSIT ACCOUNT****Loan No: 3787** **(Continued)** **Page 3****Cure Provisions.**If any default, other than a default in payment is curable and if Grantorhas not been given a notice of a breach of the same provision of this Agreement within thepreceding twelve (12) months, it may be cured if Grantor, after receiving written notice fromLender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2)if the cure requires more than fifteen (15) days, immediately initiates steps which Lenderdeems in Lender’s sole discretion to be sufficient to cure the default and thereaftercontinues and completes all reasonable and necessary steps sufficient to produce complianceas soon as reasonably practical.**RIGHTS AND REMEDIES ON DEFAULT.**Upon the occurrence of an Event of Default, or at any timethereafter, Lender may exercise any one or more of the following rights and remedies, in additionto any rights or remedies that may be available at law, in equity, or otherwise:**Accelerate Indebtedness.**Lender may declare all Indebtedness of Grantor to Lender immediatelydue and payable, without notice of any kind to Grantor.**Surrender of Account.**Lender may surrender the Account to the Issuer and obtain paymentthereunder subject to any early withdrawal penalty imposed by the Issuer, when applicable.**Application of Account Proceeds.**Lender may obtain all funds in the Account from the issuerof the Account and apply them to the Indebtedness in the same manner as if the Account hadbeen issued by Lender. If the Account is subject to an early withdrawal penalty, that penaltyshall be deducted from the Account before its application to the Indebtedness, whether theAccount is with Lender or some other institution. Any excess funds remaining afterapplication of the Account proceeds to the Indebtedness will be paid to Grantor as theinterests of Grantor may appear. Grantor agrees, to the extent permitted by law, to pay anydeficiency after application of the proceeds of the Account to the Indebtedness. Lender alsoshall have all the rights of a secured party under the Iowa Uniform Commercial Code, even ifthe Account is not otherwise subject to such Code concerning security interests, and theparties to this Agreement agree that the provisions of the Code giving rights to a securedparty shall nonetheless be a part of this Agreement.**Transfer Title.**Lender may effect transfer of title upon sale of all or part of theCollateral. For this purpose, Grantor irrevocably appoints Lender as Grantor’sattorney-in-fact to execute endorsements, assignments and instruments in the name of Grantorand each of them (if more than one) as shall be necessary or reasonable.**Other Rights and Remedies.**Lender shall have and may exercise any or all of the rights andremedies of a secured creditor under the provisions of the Iowa Uniform Commercial Code, atlaw, in equity, or otherwise.**Deficiency Judgment.**If permitted by applicable law, Lender may obtain a judgment for anydeficiency remaining in the Indebtedness due to Lender after application of all amountsreceived from the exercise of the rights provided in this section.**Election of Remedies.**Except as may be prohibited by applicable law, all of Lender’s rightsand remedies, whether evidenced by this Agreement or by any other writing, shall becumulative and may be exercised singularly or concurrently. Election by Lender to pursue anyremedy shall not exclude pursuit of any other remedy, and an election to make expenditures orto take action to perform an obligation of Grantor under this Agreement, after Grantor’sfailure to perform, shall not affect Lender’s right to declare a default and exercise itsremedies.**Cumulative Remedies.**All of Lender’s rights and remedies, whether evidenced by this Agreementor by any other writing, shall be cumulative and may be exercised singularly or concurrently.Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and anelection to make expenditures or to take action to perform an obligation of Grantor underthis Agreement, after Grantor’s failure to perform, shall not affect Lender’s right todeclare a default and to exercise its remedies.**MISCELLANEOUS PROVISIONS.**The following miscellaneous provisions are a part of this Agreement:**Amendments.**This Agreement, together with any Related Documents, constitutes the entireunderstanding and agreement of the parties as to the matters set forth in this Agreement. Noalteration of or amendment to this Agreement shall be effective unless given in writing andsigned by the party or parties sought to be charged or bound by the alteration or amendment.**Attorneys’ Fees; Expenses.**Grantor agrees to pay upon demand all of Lender’s costs andexpenses, including Lender’s attorneys’ fees and Lender’s legal expenses, incurred inconnection with the enforcement of this Agreement. Lender may hire or pay someone else tohelp enforce this Agreement, and Grantor shall pay the costs and expenses of suchenforcement. Costs and expenses include Lender’s attorneys’ fees and legal expenses whetheror not there is a lawsuit, including attorneys’ fees and legal expenses for bankruptcyproceedings (including efforts to modify or vacate any automatic stay or injunction),appeals, and any anticipated post-judgment collection services. Grantor also shall pay allcourt costs and such additional fees as may be directed by the court.**Caption Headings.**Caption headings in this Agreement are for convenience purposes only andare not to be used to interpret or define the provisions of this Agreement.**Governing Law.**This Agreement will be governed by federal law applicable to Lender and, tothe extent not preempted by federal law, the laws of the State of Iowa without regard to Itsconflicts of law provisions. This Agreement has been accepted by Lender in the State of Iowa,**No Waiver by Lender.**Lender shall not be deemed to have waived any rights under thisAgreement unless such waiver is given in writing and signed by Lender. No delay or omissionon the part of Lender in exercising any right shall operate as a waiver of such right or anyother right. A waiver by Lender of a provision of this Agreement shall not prejudice orconstitute a waiver of Lender’s right otherwise to demand strict compliance with thatprovision or any other provision of this Agreement. No prior waiver by Lender, nor any courseof dealing between Lender and Grantor, shall constitute a waiver of any of Lender’s rights orof any of Grantor’s obligations as to any future transactions. Whenever the consent of Lenderis required under this Agreement, the granting of such consent by Lender in any instanceshall not constitute continuing consent to subsequent instances where such consent isrequired and in all cases such consent may be granted or withheld in the sole discretion ofLender.**Notices.**Any notice required to be given under this Agreement shall be given in writing, andshall be effective when actually delivered, when actually received by telefacsimile (unlessotherwise required by law), when deposited with a nationally recognized overnight courier,or, if mailed, when deposited in the United States mail, as first class, certified orregistered mail postage prepaid, directed to the addresses shown near the beginning of thisAgreement. Any party may change its address for notices under this Agreement by giving formalwritten notice to the other parties, specifying that the purpose of the notice is to change theparty’s address. For notice purposes, Grantor agrees to keep Lender informed at all times ofGrantor’s current address. Unless otherwise provided or required by law, if there is morethan one Grantor, any notice given by Lender to any Grantor is deemed to be notice given toall Grantors.
 
 

 
**ASSIGNMENT OF DEPOSIT ACCOUNT****Loan No: 3787** **(Continued)** **Page 4****Power of Attorney.**Grantor hereby appoints Lender as its true and lawful attorney-in-fact,irrevocably, with full power of substitution to do the following: (1) to demand, collect,receive, receipt for, sue and recover all sums of money or other property which may now orhereafter become due, owing or payable from the Collateral; (2) to execute, sign and endorseany and all claims, instruments, receipts, checks, drafts or warrants issued in payment forthe Collateral; (3) to settle or compromise any and all claims arising under the Collateral,and in the place and stead of Grantor, to execute and deliver its release and settlement forthe claim; and (4) to file any claim or claims or to take any action or institute or takepart in any proceedings, either in its own name or in the name of Grantor, or otherwise,which in the discretion of Lender may seem to be necessary or advisable. This power is givenas security for the Indebtedness, and the authority hereby conferred is and shall beirrevocable and shall remain in full force and effect until renounced by Lender.**Severabillty.**If a court of competent jurisdiction finds any provision of this Agreement tobe illegal, invalid, or unenforceable as to any circumstance, that finding shall not make theoffending provision illegal, invalid, or unenforceable as to any other circumstance. Iffeasible, the offending provision shall be considered modified so that it becomes legal,valid and enforceable. If the offending provision cannot be so modified, it shall beconsidered deleted from this Agreement, Unless otherwise required by law, the illegality,invalidity, or unenforceability of any provision of this Agreement shall not affect thelegality, validity or enforceability of any other provision of this Agreement.**Successors and Assigns.**Subject to any limitations stated in this Agreement on transfer ofGrantor’s interest, this Agreement shall be binding upon and inure to the benefit of theparties, their successors and assigns, If ownership of the Collateral becomes vested in aperson other than Grantor, Lender, without notice to Grantor, may deal with Grantor’ssuccessors with reference to this Agreement and the Indebtedness by way of forbearance orextension without releasing Grantor from the obligations of this Agreement or liability underthe Indebtedness.**Survival of Representations and Warranties.**All representations, warranties, and agreementsmade by Grantor in this Agreement shall survive the execution and delivery of this Agreement,shall be continuing in nature, and shall remain in full force and effect until such time asGrantor’s Indebtedness shall be paid in full.**Time is of the Essence.**Time is of the essence in the performance of this Agreement.**DEFINITIONS.**The following capitalized words and terms shall have the following meanings whenused in this Agreement. Unless specifically stated to the contrary, all references to dollaramounts shall mean amounts in lawful money of the United States of America. Words and terms usedin the singular shall include the plural, and the plural shall include the singular, as thecontext may require. Words and terms not otherwise defined in this Agreement shall have themeanings attributed to such terms in the Uniform Commercial Code:**Account.**The word “Account” means the deposit accounts described in the “CollateralDescription” section.**Agreement.**The word “Agreement” means this Assignment of Deposit Account, as this Assignmentof Deposit Account may be amended or modified from time to time, together with all exhibitsand schedules attached to this Assignment of Deposit Account from time to time.**Borrower.**The word “Borrower” means Homeland Energy Solutions, LLC and includes allco-signers and co-makers signing the Note and all their successors and assigns.**Collateral.**The word “Collateral” means all of Grantor’s right, title and interest in and toall the Collateral as described in the Collateral Description section of this Agreement.**Default.**The word “Default” means the Default set forth in this Agreement in the section titled“Default”.**Event of Default.**The words “Event of Default” mean any of the events of default set forth inthis Agreement in the default section of this Agreement.**Grantor.**The word “Grantor” means Homeland Energy Solutions, LLC,**Guaranty.**The word “Guaranty” means the guaranty from guarantor, endorser, surety, oraccommodation party to Lender, including without limitation a guaranty of all or part of theNote.**Indebtedness.**The word “Indebtedness” means the indebtedness evidenced by the Note or RelatedDocuments, including all principal and interest together with all other indebtedness andcosts and expenses for which Grantor is responsible under this Agreement or under any of theRelated Documents, Specifically, without limitation, Indebtedness includes all amounts thatmay be indirectly secured by the Cross-Collateralization provision of this Agreement.**Lender.**The word “Lender” means Home Federal Savings Bank, its successors and assigns.**Note.**The word “Note” means the Note executed by Homeland Energy Solutions, LLC in theprincipal amount of $3,517,672.00 dated March 23, 2007, together with all renewals of,extensions of, modifications of, refinancings of, consolidations of, and substitutions forthe note or credit agreement.**Property.**The word “Property” means all of Grantor’s right, title and interest in and to allthe Property as described in the “Collateral Description” section of this Agreement.**Related Documents.**The words “Related Documents” mean all promissory notes, creditagreements, loan agreements, environmental agreements, guaranties, security agreements,mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,agreements and documents, whether now or hereafter existing, executed in connection with theIndebtedness.**GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS ASSIGNMENT OF DEPOSIT ACCOUNT ANDAGREES TO ITS TERMS. THIS AGREEMENT IS DATED MARCH 23, 2007.****GRANTOR ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS ASSIGNMENT OF DEPOSIT ACCOUNT AND ALLOTHER DOCUMENTS RELATING TO THIS DEBT,**
 
 

 
**ASSIGNMENT OF DEPOSIT ACCOUNT****Loan No: 3787** **(Continued)** **Page 5**         **GRANTOR:**      ** **        **HOMELAND ENERGY SOLUTIONS, LLC**      ** **        **By:** **/s/ Stephen K. Eastman** **By:** **/s/ Bernard Retterath**     **Steve Eastman, President of Homeland Energy**    **Bernard Retterath, Treasurer of Homeland Energy**     **Solutions, LLC**   **Solutions, LLC**           **LENDER:**               **HOME FEDERAL SAVINGS BANK**               **X** **/s/ Bradley Krehbiel**                 **Authorized Signer**