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tax stamps; (vi) will keep the Inventory insured for the benefit of
Bank against loss, damage and theft, with extended coverage, in an amount
equal to.full cash value of the Inventory, excluding Yard Inventory,
under policies satisfactory to Bank which shall provide that any proceeds
shall be payable to Debtor and Bank as their interests may appear;
(vii) join with Bank in executing one or more financing statements,
notices, affidavits, and any other instruments in form satisfactory to
Bank as Bank from time to time requests, and pay the cost of filing them
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in any public office deemed advisable by Bank; (viii) will deposit
with Bank any certificates of title and certificates of origin issuable
with respect to any of the Inventory with a notation thereon of the
security interest hereunder; (ix) give Bank any financial statements,
reports, certificates, lists of purchasers of Inventory (showing names,
addresses, and amounts owing), and other data concerning its accounts,
contracts, collections, Inventory and other matters as Bank from time
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to time requires; and (x) take all reasonable steps necessary to preserve
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and protect the collateral. ~
4. Debtor shall neither sell, assign nor grant any security ~
interest in the Inventory or any Receivable to anyone other than~Bank,
while this Agreement is in force. Debtor shall place notations upon
its books of account to disclose the assignment of all Receivables to
~I Bank and Bank's security interest in both the Inventory and Receivables.
Debtor shall perform all other. steps requested by Bank to create, perfect j
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and maintain Bank's valid, first security interest. Bank may file
one or more Financing Statements disclosing its security interest with-
out Debtor's signature.
S. Bank will lend to Debtor, in its discretion, up to
eighty percent (80X) of the net amount of eligible Receivables and
forty percent (40X) of Inventory, less such reserves as Bank may deem
proper, said loan not to exceed $1,500,000.00. Bank, in its sole
discretion and at any time, may refuse to make additional- advances to
Debtor against the Inventory and Receivables. Bank shall be entitled
to retain its security interest in and title to all existing and future
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s Receivables, Inventory, and other Collateral held by either Debtor or r
Bank hereunder and Debtor shall continue to assign Receivables to Bank
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and turn over all collections to~Bank; although Bank may refuse to
make additional advances against the Inventory and Receivables until
all indebtedness or obligations have been paid and satisfied. g0G~ ~V5 ?:~i:F1UcJ5
Bank ie authorized and empowered, and at any time in its sole
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