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� � <br />To secure payment of the loan evidenced by the PROMissoRY NorE payable in accordance <br />Wlth th� TERMS OF REPAYMENT, or until all principal, interest, and late charges, if any, are paid in <br />full, the DEBTOR grants to SECURED PARN a security interest in the above described <br />COLLATERAL. <br />DEBTO� EXPRESSLY WARRANTS AND COVENANTS: <br />13. That except for the security interest granted hereby and any other security int�rests <br />describ�d in Section�5 af th� Loan Gontract Proje�t Summary, DEBTOa is the owner of the <br />Cou��w� free from any adverse lien, security interest or en�umbrances; and that DEBTOR <br />will defend the CounTE� against all ctaims and demands of all persons at any time <br />claiming tfie same or any interest therein. <br />14. That the execution and delivery of this agreement by DEBroR will not violate any law or <br />agr+eement governing DEBTOR o� to which DE�roR is a party, <br />15. To not permit or allow any adverse lien, security interest ar encumbrance whatsoever upon <br />the Co��a�w►� and not to permit the same to be attached or replevined. <br />16. That by its acceptance of the benefits derived from Maker's acceptance of the loan money <br />pursuant to the terms of the Cotv�acT between Maker and Secured Party and by its <br />representations herein, DESroR shall be estopp�d from asserting for any reason that it is <br />not authorized to grant a security interest in the CouA�� pursuant to the terms of this <br />agl eement. <br />17. To pay aill taxes and assessments of c�very nature which may be levied or assessed against <br />the Co�.wrEw�. <br />18. That the DEaTOR's articles of incorporation and by-laws do nbt prohibit any term or <br />condition of this agreement. <br />DEBTOR SHALL BE IN D�FAULT <br />following events or conditior�s: <br />g. default in the payment or performance <br />Promissory Note or Loan Contract; <br />under this agreement upon any of the <br />of any obligation contained herein or in #he <br />h. dissolution, termination of existence, insolvency, pusiness failure, �ppointment of a <br />receive�r of ar�y part of the property of, assignment for the benefit of cneditors by, or the <br />commencement of any proceeding under any bankruptcy or insolvency law of, by or <br />against DESTOR; or <br />i. the m�king or furnishing of any warranty, representatibn or statement to S�cuRE� <br />P�tnr by or on behaff of DEB7oR which proves to have been false in any material <br />respect when made or fumished. <br />UPON SUCH DEFAULT and at any time thereafter, SECURED PARTY shall have the <br />remedies of a secured party under Article 9 of the Colorado Uniform Commerciai Code. <br />SECURE� Paznr may require DEeTOR to deliver or make the CouA�w�� available to SECURE� <br />Pnr�nr at a place to be designated by SEeuREQ PAR'rY, which is reasonably convenient to both <br />parties. Expenses of retaking, holding, preparing f+�r sale, selling or the like shall include <br />SECURE� PARrr's reasonable attomey's fees and legal expenses. <br />The SECURE� PART1r shall giv� th� D�sTOR written notice of any alleg�d default and an <br />opportunity to cure within thirty (30) days of receipt of such �otice before the DEBTOR shall be <br />considered in default for purposes of this Security Agreement. No default shall be waived by <br />SECURED PAR1Y @XCept Itl W1'1�111g, and no waiver by SECUREa P�tn of any default shall operate <br />as a waiver of any other default or of the same default on a future occasion. The taking of this <br />Appendix 11 #o Loan Contract C180240 <br />Page 2 of 3 <br />