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Home My WebLink About0013 vehiclrs, inrludinK coUision covcrab~e. Such insu~ance policies shall cuntain such terms, be in a form, for a period and be written by rompanies satisfactory tu Secured Party. SucA insurance policies shall also contain s standard mortgaRee's endorseme~t providing for paymrnt oi any loss to Secured Party. All policies of insurance shall provide for ten days writtrn minimum cancellation notice to Secumd Party. Debtor shaN furnish Secured Patty with certificates ur other evidence satistactory to Secured Party of compliance with the foreRoing insurance provisions. Securnd Party may act as attorney fur Debtor in obtaining. adjusLinR, settling And canceiling such insurance and endorsin~ any drafts drawn by in- ~urers of the Collateral. Secured Psrty may apply any proceeds of such insurance which may be received by it in payment on account of the obligatior_~ secured hereby. whether due or not. (101 The Collateral vvill not be sold, transferred or disposed of by Debtor or be sub'ected to any unpaid c•harge. including rent and ti?xes, or to any subsequent interest of a third person created or a~fered by Debtor vol- untarily or involuntsrily. unless Secured Yarty consents in advance in wnting to such sale. transfer, disposition, charge, or subsequent ~nterest. (11) Debtor will sign and execute alone or W ith Secured Party any Financing Ststement or other document rr procure any document, and pay all connected costs, necessary to protect the security interest under this Sectirity ~Rreeme~t against the rights ar interests of thisd persons. (12) Aebtor will, at its own expense. do, make. ptocure, execute and deliver all acts. thinga. writing and xssurances as Secured Party may at any time request to protect, assure or enforce its internsts. rights und remedies rreated b~•~ provided in or emanatinR from this Security Agreement. - (13) Dehtor will not lend. rent, lease or otherwise dispose of the Collateral or any interest therein except as authorized in this Security Agreement or in writing by Secured Party, and Debtor shall keep the Collateral, in- ciuding the proceeds from any dispos~tion thereof. free from unpaid charges, including taxes, and fmm liens. encumbrances, and security interests other than that of Secured Party. (14 ) If Secured Party shou2d at any time be of the opinion that the Collateral is not sufficient o~ has declined or may decline in value or should Secured Party deem payment af Debtor's obligations to Serured Party to be insecurn, then Secured Party may cail for additionai Coliateral satisfactory to Secured Party~ and Debtor promises . to furnish such additeonal security forthv?ith. The call for additional security may be oral or by telegram or by United States mail addressed to the address of Debtor shown at the beginning of this agreement. Section R Fventa of Default. Debtor shall be in default under this Security Agreement upon the happening of any of the following events or con- rlitions -(herein called an "Event of Default"): (1) Debtor's failure to pay when due any indebtedness secured by this Secutity Agrnement. either principal or interest. (2) Default by Debtor in the punctual performance of any of the obligations, covenants, terms or provisions 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 ~ecured Party by• or on behalf of Deblor in connection with this SecuriEy Agreement or to induce Secured Partq to ~nake a loan to Debtur proves to have been false in any respect when made or furnished. . . (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 existence, insolvency or business failure; the appointment of a receiver of all or any part of the property of Debtor; an assi~nment for the benefit of creditors of Debtor; the calling ~,f a meeting of creditors of Debtor; or the commencement of any proceeding under any bankruptcy or insolvency laws by or aRainst Dedtor or any guarantor or surety fer Debtoi. (6) Any statement of the financial condition of Debtor or of anp ~~arantor. snrety or endorser of any liability ~~f Debtor to Secured Party submitted to Secuted Party by Debtor or any such guarantor. surety or endorser proves Lo be false. (7) The Collateral becomes, in the judgment of Secured Party, unsatisfactory or insufficient in character or value. 18) Any (~uarantor, surety or endorser for Debtor defaults in any obli~ation or lisbility to Secured Party. Sation VI. Secured Patts's Rights and Remedies. A. Rights Eaelusive of Default. (1) This Security Agreement, Secured Party's rights hernunder or the indebtedness herebq secured may be ussigned from time to time. and in any such case the Assigaee °shall be entitled to all of the rights, privileges and remedies ~ranted in this Security Agreement to Secured Party, and Debtor will assert no claims or defenses he msy have against Secured Party against the Assignee. except those granted in this Security Agreement. (2) Secured Party may enter upon Debtor's premises at any reasonabie time to ins~ect the Collateral and 1)ebtor's books and records pertaining to the Collateral, and Debtor shall assist SecureJ Party in mak~ng any such inspection. (3) Secured Party may execute, sign, endorse, transfer or deliver in the name of Debtor notes, checks, drafts ,~r other instruments for the payment of money and n~ceipts, certificates of orgin, applications for certificates of title or any other documents necessary to evidence, perfect or realize upon the security interest . and obligations created by this Security Agreement. - (4) At its 'option, Secured Party may discharge taxes, liens or security interests or other encumbrances at any time levied or placed on the Collateral, may pay for insurance on the Collateral and may pay for the maintenance and presen•ation of the Collateral. Debtor agmes to reimburse Secured Party on demand for any payment made, or expense incurred by Secured Party pursuant to the fore~;oinR suthotization, plus interest thereon a! the rate of ten per cent (10~''~) per annum. - B. ttights in Es•e~t of Defaalt. (1) Upon the occurrence of an Event of Default, or if Secured Party deems payment of Debtor's obligations tu Secured Party to be insecure, and at any time thereafter, Secured Party may declane all obligations secured hereby immediately due and paysble and shall ha~e the rights and remedies of a Secured Party under the Uniform Com- mercial Code of Texas, including without limitation thereto, the tight to se]l, lease or otherwise dispose of any or all ~~f the Coltateral and the ri~ht to take possession of the Collateral, and for that purpose Secured Party may enter upon xny pmmises on which the Collateral or any part thereof may be situated and remove the same therefrom. Secured Party may requirn Debtor to assemble the Collaterat and make it araiiable to Secured Party at a place to be designated t~y Secured Party ti+hich is reasonably convenient to both parties. Unless the Collateral is perishable or threater.s to de- cline speediiy in value or is of a type customarily sold on a recoRnized market, Secured Party will send Debtor reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or other disposition thereof is to be made. The requirement of sending reasonable notice shall be met if such notice is mailed, postage prepaid, to Debtor at the address designated at ti~e beginning of this Security Agreement at least five days before the time ~,f the sale or disposition. Expenses of retaking, holding, prnparing for sale, selling or the like shali include Secured Party's reasonable attorneys' fees and legal exper.ses. plus interest thereon at the rate of ten per cent (10'i~) per annum. Debtar shall rema~n liable for any deficiency. (2) Secured Party may remedy any default and may aaive any default without waiving the default remedied ~ „r without waiving any other prior or subseqyent defaul~ (3) The temedies of Secured Party hereunder are cumalative, and the exercise of any one or more of the remxdies ~~rovided for herein shall not be construed as a waiver of any of the other remedies of Secured Party. Section VII, Additional Agreements. (1) The term "Debtor" as Used in this instrument shait be construed as singular or plural to correspond a~th the number of persons executinR this instrument as Debtor. The pronouns used in this instrument are in the masculine ~ender but shall be construed as feminine or neuter as occasion may require. "Secured Partq" and "DeDtor" as used in this instrument include the heirs, executors or administrators, successors, representatives, receivets, trustees and assi~ns of those parties. (2) If more than one person executes this instrument as Debtor, their obligations under this instrument shal] he joint and seLeral. (3) The section headings appearinR in this instrument have been inserted for convenience only and shall be y;i~en no substantative meaning or significance whatever in construinR the terms and provisions of this instrument. Terms used in this insfrument which are defined in the Texas Uniform Commercial Code are used with the meanings as therein defined. (4) The law RoverninR this secured transaction shall be that of the State of Texas in foree at the date of this instrument. ERECUTED this ~t day of s~p~~~~ , 19~. SECURED PARTY: DEBTOR: . - ~i~~~ Wfi~T~! ~\i~ M/~~i ~ ~iii~~ I~• By`_ ~~_*_y~~~--' _ f~C~` ~ G~ ~t ~ J. R'.~ 1its~~d -!'sNiA~at TZ?Li s f~-2 - ~OR!: ~00 PrC~ ~3 - _ . ~ , ~ ~ ~ ~ ~ ~ ti, . ' ~ ~