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HomeMy WebLinkAbout1374 a I t i t~ 6: Debtor will, at ail times, maintain in full force and effect ,insurance with respect t~ the collateral against risky en-~ompassed " within the standard policy of fire insurance with extended covc~rxKe endorsement, theft anal other risks as Secured Party may require, and written by such company or companies as may be satisfactory to Secured Party. such insurance to be payable to Secured Party and Debtor ati their interests may appear. All such policies of insurance shall pru- vide for nat~less than ten (10) days' written notice of cancellations tee Secured Party and, at the request of Secured Party. shall be delivereJ to and held by it. Secured Party may act as attorney-in-fact for Debtor in obtaining, adjusting, settling and cancelling such insurance and endorsing,any drafts. 7. Debtor will keep the collateral free from any adverse lien, security interest or encumbrance and in good order and repair and will not waste or destroy the collateral or any part thereof (except that Debtor shall be entitled to sell the collateral in the ordinary and usual course of business). Secured Party may examine and inspect the collateral ect any reasonable time wherever located. 8. Debtor ~jill pay promptly when due all taxes and assessments upon the collateral or for its use and operation. At its option, Secured Party may discharge taxes, liens, security interests or other en- cumbrances 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. Debtor agrees to reimburse Sec~ired Party on demand for any payment made or any expense incurred by Secured Party pursuant to the foregoing authorization. An~r and all sums so advanced by Secured Party for Debtor shall bear interest at the highest lawful rate, and said sums and said interest shall be secured by the ~ collateral. 9. Until default, Debtor may have. possession of the collateral and use it in any lawful manner not inconsistent with this agreement and not inconsistent with any policy of insurance thereon. P 10. Debtor shall be in default under this agreement upon the happening of any of the following events or conditions: (a) Default in the payment or performance of any ~ obligation, covenant, or liability contained or referred to herein, or in any invoice, statement, book account, account stated, note, or other evidence of indebtedness of Debtor to Secure) Party; (h) Any warranty, representation or statement made or furnished to Secured Party by or on behalf of Debtor proves to have been false in any material respect when made or furnished; (r.) Any event which results in the acceleration of ~ the maturity of the indebtedness of Debtor to others ~ under any indenture, agreement or undertaking; 80315 p~~~372 E ~