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<br />5. Promptly to notifY Secured Party of any change in the :Iocation of the Collateral.
<br />
<br />6. To pay all taxes and assessments of evet)' nature which may be levied or assessed against the Collateral.
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<br />7. Not to pennit or allow any adverse lien, security interest or encumbrance whatsoever upon the Collateral and not to
<br />pennit the same to be attached or replevined. :
<br />
<br />8. That the Collateral is in good condition, and that Oebtor will, at Debtor's own expense, keep the same in
<br />good condition and from time to time, forthwith, replace and ~epair all such parts of the Collateral as may be broken,
<br />worn out, or damaged without allowing any lien to be, created: upon the Collateral on account of such replacement or
<br />repairs, and that the Secured Party may examine and inspect th~ Collateral at any time, wherever located.
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<br />9. That Debtor will not use the Collateral in violation of any applicable statutes, regulations or ordinances.
<br />
<br />10. The Debtor will keep the Collateral at all times insured against risks of loss or damage by fire (including so-
<br />called extended coverage), theft and such other casualties as the Secured Party may reasonably require, including collision
<br />in the case of any motor vehicle, all in such amounts, under such forms of policies, upon such terms, for such periods, and
<br />written by such companies or underwriters as the Secured pariy may approve, losses in all cases to be payable to the
<br />Secured Party and the Debtor as their interest may appear. All policies of insurance shall provide for at least ten days' prior
<br />written notice of cancellation to the Secured Patty; and the Debtor shall furnish the Secured Party with certificates of such
<br />insurance or other evidence satisfactory to the Secured Party as 10 compliance with the provisions of this paragraph. The
<br />Secured Party may act as attorney for the Debtor in making, adjusting and settling claims under or cancelling such
<br />insurance and endorsing the Debtor's name on any drafts draw~ by insurers of the Collateral.
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<br />UNTIL DEFAULT Debtor may have possession of the CO,llateral and use it in any lawful manner, and upon default
<br />Secured Party shall have the immediate right to the possession of the Collateral.
<br />, !
<br />DEB'lOR SHAll. BE IN DEFAULT under this agreement upon the happening of any of the following events or
<br />conditions:
<br />
<br />(a) default in the payment or perfonnance of any obligation, covenant or liability contained or referred to herein or in any
<br />note evidencing the same;
<br />
<br />(b) the making or furnishing of any warranty, representation or statement to Secured Party by or on behalf of Debtor
<br />which proves to have been false in any material respect when mad~ or furnished; ,
<br />
<br />(c) loss, theft, damage, destnlction, sale or encumbrance to :or of any of the Collateral, orthe making of any levy seizure
<br />or attachment thereof or thereon; ,
<br />
<br />(d) death, dissolution, tennination of existence, insolvency,:business failure, appointment ofa receiver of any part of the
<br />property of, assignment for the benefit of credito';' by, or the cotlunencement of any proceeding under any bankruptcy or
<br />insolvency laws of, by or against Debtor or any guarantor or surety for Debtor.
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<br />UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure, Secured Party may declare all
<br />Obligations secured hereby immediately due and payable and shall ihave the remedies of a secured party under Article 9 of the
<br />Colorado Unifonn Commercial Code. Secured Party may require iDebtor to assemble the Collateral and deliver or make it
<br />available to Secured Party at a place to be designated by Secured PartY which is reasonably convenient to both parties. Expenses of
<br />retaking, holding, preparing for sale, selling or the like shall i"'llude Secured Party's reasonable attorney's fees and legal
<br />expenses.
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<br />No waiver by Secured Party of any default shall operate as a waiver of any other defalilt or of the same default on a future
<br />occasion. The taking of this security agreement shall not waive or impair any other security said Secured Party may have or
<br />hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such additional security waive or impair
<br />this security agreement; but said Secured Party may resort to any $ecurity it may have in' the order it may deem proper, and
<br />notwithstanding any collateral security, Secured Party shall retain i\s rights of set-off against Debtor.
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<br />All rights of Secured Party hereunder shall inure to the benefif ofilS successors and assigns; and all promises and duties of
<br />Debtor shall bind his heirs, executors or a\lministrators or his or its s~ccessors or assigns. If there be more than one Debtor, their
<br />liabilities hereunder shall be joint and several. .
<br />
<br />Date this
<br />
<br />day of
<br />
<br />November
<br />
<br />,19 99
<br />
<br />Debtor: IJlar,liel A. Sherwood and
<br />Jacquel~ne P. Sherwood Trust
<br />
<br />Secured Party:'
<br />
<br />uan~eL ~. bherwooa, ~tus~ee
<br />
<br />Oan~el A. snerwooarLna~v~auaLLY
<br />
<br />0,
<br />j
<br />
<br />Jaequclinc 1'. Sacr\leear Trustee '"acquellne P. 5htuwuud, Iudlv.i.uually
<br />.. 'If this Security Apamcnt illnccndcd 10 scnoc a. ftnanclnl SIIlCmCnllCCUred part)' lIS well. the c1eblor mUM Ilan. .
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