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HomeMy WebLinkAbout2519 ~•ehirles, includinR collision cove~a~ce. Such inaurance policies shall contaio such terms, be in a tortn, for ape riod and' be ~ ~ ritten by companies satisfactory to Secured Party. Such insurance po licies ahall also contain s standard mortga~ee'a endorseme~t providing for payment oi any loss to Secured Party. All policies of insurance ahall pmvide for ten daya w•ritten minimum cancellation ~otiee to Secured Party. Debtor shall furnish Secured Party with certificatea or other evidence satisiactory to Secured Farty of compliance with the ioregoing insura~ce provisiona. Secured Party may act aa sttorney for DebWr in obtaining, adjusting, settling and cancelling auch insurance at?d endorsi~g any drafta drewn by in- surers of the Coilateral. Secured Party may apply any proceeds of such insurance which may be received by it in payment on account of the obligatior.:. aecuted hereby, whether due or not~ (10) The Collatersl will not be sold. ttanaferred or dispoaed of bq Debtor or be snb'ected to any unpaid c•harge, including rent and laxea. or to any subsequent internat oi s third Qerson created ot s~fered by Debtor vol- untarily oc invoiuntatil~r, unless Secured Yatty eonsents in advance in wnting to such sale. tranafer. disposition. :•herge, or subsequent ~nteres~ (11) Debtor will sign and execnte slone or with Secured Party any Financing S4tement or other document ur procurn any document, and pay all connected costs, necessary to protect the aecurity intenat under this •Security ~greement against the rights or intereata of third petaona. (12) Debtor will. at its own expense. do, make. procure. execute and deliver sll acta. things~ writing and assurances as Secured Party may at any time requeat to ptoteet, a3sure or enforce its inter~sts. righta and remedies r~eated by~ provided in or einanating from this 3ecurity Agreement (13) Debtor wiU not lend. rent, lease or otherwise dispose of the Collateral or any interest therein except ns suthorized in this Security Agreeme~t or in wtiting by Secured Party. and Debtor ahsll keep the Collatenl. in- cluding the proceeds from any disposition thereof. free from unp?id chargea, including taxes. and from liena. encumbrancea. _~nd security interests other than that of Secured Party. (14) Ii Secured Party should at any time be of the opinion that the Collateral is not aufficient or haa declined or may decline in value or ahould Secured Party deem payment of Debtor's obligations to Secured Partq to be insecure, then Secured Party may calt for additional Collateral satisfactory to Secured Party. and Debtor promises to furniah such additional security forthwith. The call for additional security may be oral or by telegcam or by United States mail addressed to the addreas of Debtor shown at the beginning of this agreement Seetioa V. Bvents of Dehul~ Debtor shall be in default under this Security Agreement npon the happening of any of the following eventa or con- ditions (herein called an "Event of Default"): (1) Debtor's failure to paq when due any indebtedness secured by thia Security Agreement, either principal or intereat. (2) Default by Debtor in the punctuai performance of any of the obligationa. covensots, terms or pmvisions con- tained or referred to in this Security Agreement or in any note secured hereby. (3) Any warranty, representation, or statement contained in this Security Agreement or made or furnished to Secured Party by or on behalf of Debtor in connection with this Security Agreement or to induce Secured Party to make a loan to Debtor pmves to have been false in any respect when made or fnrnished. (4) Loss, theft. substantial damage, destruction, sale or encumbrance of or to any of the Collateral. or the making ~f any levy, seizure or attachment thereof or thereon. (5) Debtor's death, dissolution, termination of e:istence. insolvency or busineaa failure; the appointment oi a receiver of all or any part of the property of Debtor; an assignment for the benefit oi creditors of Debtor; the calling uf a meeting of creditors of Debtor; o; the commencement of any proceeding under any bankraptcy or inaolvency laws by or against Debtor or any guarantor or suretq for Debtor. (6) Any statement of the financial condition of Debtor or of any guarantor. surety or endoraer of anq lisbility ~~f Debtor to Secured Party submitted to Secured Party bq Debtor or any such guarantor. suretq or endoraer pmves to be fslse. (7) The Collateral becomes, in the judgment of Secured Party, unsatisfactory or insufficient in character or value. (8) Any guarantor, surety or endorser for Debtor defaulta in any obligation or liability to Secared Party. Section VI. Seenred Party'a Righta aod Remedies. A. Rights Exelosive oE Defaalt. (1) This Security Agreement, Secured Party's rights hereunder or the indebtedness hereby secured may be assigned from time to time. and in any such case the Assignee shalt be entitled to all of the tights, privilegea and remedies granted in this Security Agreement to Secured Party. and Debtor will assert no claima or defenses he may have against Secured Party against the Asaignee. except those granted in this Security Agreemenk ' (2) Secured Party may enter upon Debtor's premises at any ressonable time to inapect the Collateral and I)ebtor's books and records pertaining to the Collateral, and Debtor shall sssist Secure.i Party in mairing sny such inapection. (3) Secured Party may execute. sign. endorse. transfer or deliver in the name of Debtor notea, checks. drafts :,r other instruments for the payment of money and receipta, certificates of orgin, apptications for certificates of title ~~r any other documents necessary to evidence. perfect or realize upon the security interest and obligations crested by this Security Agreement. j (4) At its `option. Secured Party may discharge taxes, liens or aecuritq intereats or other encumbrancea ; at any time levied or placed on the Collateral, may pay for insnrance on the Collateral and maq pay for the maintenance and preservation of the Collateral. Debtor agrees to reimburse Secured Party on demand for any payment made, or cxpense incurred by Secured Party pursuant to the foregoing authorization, plus interest thereon at the rate of ten per cent (l0 rc) per annum. _ B. Righta in Eveat of Default. ' ` (1) Upon the occurrence of an Event of Default. or if Secured Party deems psyment of Debtor'a obligations ~ to Secured Party to be insecure, and at any time thereafter. Secured Party may declare all obligationa secured hereby immediately due and payable and shall have the rights and remedies of a Secured Party under the Uniform Com- mercial Code of Texas, including without limitation thereto, the right to sell, lease or ott~erwiae dispose of any or sll : ~~f the Collateral and the riRht to take possession of the Collateral. and for that purpose Secured Partq may enter npon ; any premises on which the Collateral or any part thereof may be situated and remove the ssme therefrom. Secured Party 5 may require Debtor to assemble the Collateral and make it available to Seeured Part~r at a place to be designated { by Secured Party which is rnasonably con~enient to both parties. Unless the Collateral is perishable or threatens to de- cline speedily in value or is of a type customarily sold on a recognized market, Secured Partq will send Debtor reasonable ~ notice of the time and place of any public sale thereof or of the time after which anq ptivate sale or other diaposition ~ thereof is to be made. The mquirement of sending rnasonable notice shall be met if such notice ia mailed, postage prepaid. to Debtor at the addrnss designated at the beginning of this Security Agreement at lesat five dsys before the time ~ of the sale or disposition. E:penses of retaking. holding. preparing for sale. selling or the like shall include Secured Party's ~ reasonable attorneys' fees and legal eapenses, plus interest thereon at the rate of ten per cent (10~1~) per annum. ~ Debtor shall remain liable for any deficiency. ~ (2) Secured Party may remedy any default and may waive any default without waiving the default remedied ~ ~~r without waiving any other prior or subsequent default. ~ (3) The remedies of Secured Party hereunder are cumulative, and the eaenise of any one or more-of the remEdiea provided for herein shall not be construed as a waiver of any of the other remediea oi Secured Party. ~3 ° Section ~II. Additioaal _ASreemeats. ? (1) The tertn "Debtor" as used in this instrument shall be constraed as singular or plurat to corresgond with ? the number of persons executin~[ this instrument as Debtor. The pronouns used in this inatrument are in the masculine ~ender but shall be construed as feminine or neuter as occasion may require. "Secuted Party" and "Debtor" as used in this instrument indude the heirs, executors or administrators, succesaors, repreaentativea, receivers, t.rustees and . ~ assi~ns of those parties. (2) If more than one person executes this instrument as Debtor. their obligations under this inatrument shall ; i,e ioint and several. . : . __;~t.: (3) The section hea~,ings sp~ptSAg in this instrument have been insected for convenience only and ahall be =t ~;iven no substantative meaning or 8~etificance whatever in construing the terms and provisions of this inatrument. _ 1'erms used in this instnrme{~t which gre ~efined in the Texas Unitorm Commercial Code are used with the meaninga as therein defined. ~t. . - : ~.:.'~~-s (4) The law governinR thls aecured transaction shall be that of the State of Texas in force at the date of thia instrument. . . ' • • ~ ~ - V~: _ . . F4 E]CECUTED this . day of _~~~fr , 19~L. ~ 3 SECURED PARTY: DEBTOR: _ •AI~~~ ~VAI~ ~~Z~r! I~a• .'e r ~ - . = f ~~-Lr_~~ - BY- - ~ - - - J-~~its ~r~l~ - Tr~ - _ ~ •id~nt lr~sid~At 7i ~ ` c • ~ • i ~/i!{R~~ i = _ _ - . , . . . W . . . ~ . _ . _ _ ~_:~~_s'