2011-03-14_REVISION - M1977493 (47)

Home Browse Search

CM0001188 claims and demands of all persons; and will pay promptly all taxes and assessments with respect to the Collateral. (b) At its option Secured Party may discharge taxes, liens, security interests and other claims against the Collateral and may pay for costs and expenses incidental to any actions undertaken by Secured Party pursuant.to paragraph 8. Any such payments by Secured Party shall become part of the Obligations, bearing interest at the same rate as the Note. (c) Debtor will from time to time execute financing statements and other documents in form satisfactory to Secured Party (and pay the cost of filing or recording them in whatever public offices the Secured Party deems necessary) to perfect and.maintain a valid security interest in the Collateral.. 8. Rights of Secured Party. (a) Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if it takes such action for that purpose as Debtor shall request. Secured Party shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties nor to protect, preserve or maintain any security interest given to secure the Collateral. (b) Upon a default and a failure by Debtor to cure such default within 15 days after receipt of written notice from Secured Party describing such default, Secured Party may take.any one or more of the following actions (and Secured Party is hereby irrevocably appointed Debtor's actorney-in-fact to accomplish this), without liability except to account for property actually received by it: (i) transfer to or register in its name or the name of its nominee any of the Collateral, with or without indication of the security interest herein created, and whether or not so transferred or registered, receive the income, dividends and other distributions thereon and hold them or apply them.to the Obligations in any order of priority; (ii) insure any of the Collateral; (iii) renew, extend, or otherwise change the terms and conditions of any of the Collateral or the Obligations,; and (vi) release any Collateral., (c) Secured Party shall be under no duty to exercise or to withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to Secured Party in this agreement and shall not be responsible for any failure to do so or delay in so doing. 9. Partial Release of Collateral. (a) Upon receipt by Secured Party of a partial prepayment of $4,098.36 of principal, together with interest accrued thereon, under the Note, Secured Party shall take all steps and execute all documents necessary to release 10 of the shares comprising the Collateral from the encumbrance of this security agreement. (b) Upon approval of the issuance of a permit and approval from Summit County for approval of a project in accordance with the Reservoir Purchase Agreement dated as of July 21, 1992 between Debtor and Secured Party (the "Agreement"), which Agreement is recorded in the real property records of Summit County, Colorado at Book Page , Reception No.. , provided the applicant of such. permit does not reject the permit as issued in accordance with the Summit County regulations, Secured Party shall take all steps and execute all documents necessary to release the Collateral from the encumbrance of this G-2