HomeMy WebLinkAbout1297 8. 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 preservation of the Collateral.
Borrowers aqree to reimburse Secured Party~on demand for any payment
made, or any expense incurred, by Secured Party, pursuant to the fore-
going authorization. Until default. Borrowers may have possession of
Collateral and use it in any lawful manner not inconsistent with this
Agreement and not inconsistent with any policy of insurance thereon.'~
9. Borrowers shall be in default under this Agreement upon
the happening of any of the following events or conditions: failure
cr omission to pay when due. any liability (or any installment thereof
or interest thereon) or default in the payment or performance of any
obligation, covenant. agreement or liability contained or referred to
herein; (b) any warranty, representation, or statement made or fur-
nished to Secured Party by or on behalf of any Borrower proves to have
been false in any material respect when made or furnished; (c) loss,
theft, substantial damage, destruction, sale or encumbrance to or of
any of the Collateral or the making of ariy levy, seizure or attachment
thereof or thereon: (d) any Obligor (which term, as used herein,
shall mean each Borrower and each other party primarily or secondarily
or contingently liable on any of the liabilities) becomes insolvent or
unable to pay debts as they mature or makes an assignment for the bene-
fit of creditors, or any proceeding is instituted by or against any
Obligor alleging that such Obligor is insolvent or unable to pay debts
as they mature; (ej entry of any judgment against any Obligor; (f)
death of any Obligor who is a natural person, or of any partner of any
Obligor which is a partnership; (g) dissolution, merger or consoli-
dation. or transfer of a substantial part of any Obligor which is a
corporation or a partnership; (h) appointment of a receiver for the
Collateral or any thereof or for any property in which any Borrower has
an interest. _
10, Upon the occurrence of-any such default or at any time
thereafter, or whenver the Secured Party feels insecure for any reason
whatsoever. Secured Party may, at its option, declare all liabilities
secured hereby, or any of them, (notwithstanding any provisions thereof}
immediately due and payable without demand or notice of any kind and
the same thereupon shall immediately become and be due and payable
wi~thout demand or notice (but with such adjustments, if any, with re-
spect to interest or other charges as may be provided for in the pro-
I~ missory note or other writing evidencing such liability) and Secured
Party shall have any exercise from time to time, any and all rights
and remedies of a Secured Party under the Uniform Commerical Code and
any and all rights and remedies available to it under any other appli-
cable law; and upon request or demand of Secured Party, Borrowers shall,
at their expense, assemble the Collateral and make it available to the
Secured Party at a convenient place acceptable to Secured Party; and
Borrowers shall promptly pay all costs of Secured Party of collection
of any and all the liabilites and enforcement of rights hereunder, in-
cluding reasonable attorneys' fees and legal expenses and expenses of
any repairs to any of the Collateral and expenses of any repairs to any
realty or other property to which any of the Collateral may be affixed.
Any notice of sale, disposition or other intended action by Secured
Party, sent to Borrowers specified above or at any other address shown
on the records of Secured Party, at least five (5) days prior to such
action, shall constitute reasonable notice to Borrowers. Expenses of
retaking, holding, preparing for sale, selling or the like, shall in-
clude Secured Party's reasonable attorneys' fees and legal expenses.
Any excess or surplus of proceeds of any disposition of any of the
Collateral may be applied by Secured Party toward payment of such of the
liabilities, and in such order of applicatiun as Secured Party may from
time to time elect.
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