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4he. insurance and endorsing any drafts.
(d) Bank at any time may in its sole discretion request in
its name; in the name of Debtor, or in the name of a third person,
confirmation from any customer debtor named in the Receivables of the
amount shown by the Receivables to•be due from such customer debtor j
or any other matters stated in the Receivables.
(e) Debtor neither has received a deposit nor has allowed
any credit on the Receivables except as disclosed to Bank. Debtor agrees
that it will neither make or pe~rimit any credits, allowances or adjust-
ments on the Receivables except in the normal course of business and
upon complying with the procedures set out below. Debtor agrees that
it will not permit any return Inventory, the sale of which gave rise
to the Receivables, except in the normal course of business. Any
Inventory thus returned will be segregated and held by Debtor in trust
for the Bank, which hereby is given a lien thereon as additional security
for the indebtedness. If Debtor grants any credits, allowances or
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adjustments on the return of any Inventory, Debtor agrees to pay, assign
to, or deposit immediately with the Bank, in a manner satisfactory to
Bank, cash or additional security acceptable to the Bank of a value at
least equal to the amount by which the Receivables may be reduced by
those credits, allowances or adjustments. The cash, security or other
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l assets delivered to Bank may be used by the Bank in its discretion in
any manner permitted under this Agreement or any other instrument
evidencing an indebtedness secured by this Agreement. Upon receipt
by Bank of such cash, security, or other assets, Bank shall relinquish
its lien on any returned Inventory to the extent of that payment.
~ (f) Debtor shall at all reasonable times allow Bank, its
agents, employees or attorneys, to (i) examine and inspect the Collateral
wherever located; (ii) examine all books, records and documentation
of Debtor with respect to the Collateral; and (iii) to make copies
- or extracts from the books, records and documentation of Debtor as Bank
may deem desirable.
(g) Debtor shall pay promptly when due all taxes and assess- ~
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ments on the Collateral, its use or operation.
(h) If, in the judgment of the Bank, the Collateral has
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decreased materially in value or if the Bank at any time deems the
obligation insecure, Debtor, at the request of the Bank, either shall s-
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provide additional Collateral sufficient to satisfy the Bank or shall ~