INSTRUMENT IS BOTH A
REAL PROPERTY MORTGAGE OR DEED OF TRUST, AS APPLICABLE, AND A "SECURITY
AGREEMENT" WITHIN THE MEANING OF THE UCC. THE PROPERTY INCLUDES BOTH REAL AND
PERSONAL PROPERTY AND ALL OTHER RIGHTS AND INTERESTS, WHETHER TANGIBLE OR
INTANGIBLE IN NATURE, OF BORROWER IN THE PROPERTY. THIS SECURITY INSTRUMENT IS
FILED AS A FIXTURE FILING AND COVERS GOODS WHICH ARE OR ARE TO BECOME FIXTURES
ON THE PROPERTY. BORROWER BY EXECUTING AND DELIVERING THIS SECURITY INSTRUMENT
HAS GRANTED TO LENDER, AS SECURITY FOR THE DEBT,
A SECURITY INTEREST IN THE
PROPERTY TO THE FULL EXTENT THAT THE PROPERTY MAY BE SUBJECT TO THE UCC (SAID
PORTION OF THE PROPERTY SO SUBJECT TO THE UCC BEING CALLED IN THIS SECTION 18.14
THE "COLLATERAL"). IF AN EVENT OF DEFAULT SHALL EXIST, LENDER, IN ADDITION TO
ANY OTHER RIGHTS AND REMEDIES WHICH IT MAY HAVE, SHALL HAVE AND MAY EXERCISE
IMMEDIATELY AND WITHOUT DEMAND, ANY AND ALL RIGHTS AND REMEDIES GRANTED TO A
SECURED PARTY UPON DEFAULT UNDER THE UCC, INCLUDING, WITHOUT LIMITING THE
GENERALITY OF THE FOREGOING, THE RIGHT TO TAKE POSSESSION OF THE COLLATERAL OR
ANY PART THEREOF, AND TO TAKE SUCH OTHER MEASURES AS LENDER MAY DEEM NECESSARY
FOR THE CARE, PROTECTION AND PRESERVATION OF THE COLLATERAL. UPON REQUEST OR
DEMAND OF LENDER WHILE AN EVENT OF DEFAULT EXISTS, BORROWER SHALL, AT ITS
EXPENSE, ASSEMBLE THE COLLATERAL AND MAKE IT AVAILABLE TO LENDER AT A CONVENIENT
PLACE ACCEPTABLE TO LENDER. BORROWER SHALL PAY TO LENDER ON DEMAND ANY AND ALL
EXPENSES, INCLUDING REASONABLE LEGAL EXPENSES AND ATTORNEYS' FEES, INCURRED OR
PAID BY LENDER IN PROTECTING ITS INTEREST IN THE COLLATERAL AND IN ENFORCING ITS
RIGHTS HEREUNDER WITH RESPECT TO THE COLLATERAL. ANY DISPOSITION PURSUANT TO THE
UCC OF SO MUCH OF THE COLLATERAL AS MAY CONSTITUTE PERSONAL PROPERTY SHALL BE
CONSIDERED COMMERCIALLY REASONABLE IF MADE PURSUANT TO A PUBLIC SALE WHICH IS
ADVERTISED AT LEAST TWICE IN A NEWSPAPER IN WHICH SHERIFF'S SALES ARE ADVERTISED
IN THE COUNTY WHERE THE PREMISES IS LOCATED. ANY NOTICE OF
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SALE, DISPOSITION OR OTHER INTENDED ACTION BY LENDER WITH RESPECT TO THE
COLLATERAL GIVEN TO BORROWER IN ACCORDANCE WITH THE PROVISIONS HEREOF AT LEAST
TEN (10) DAYS PRIOR TO SUCH ACTION, SHALL CONSTITUTE REASONABLE NOTICE TO
BORROWER. THE PROCEEDS OF ANY DISPOSITION OF THE COLLATERAL, OR ANY PART
THEREOF, MAY BE APPLIED BY LENDER TO THE PAYMENT OF THE DEBT IN SUCH PRIORITY
AND PROPORTIONS AS LENDER IN ITS DISCRETION SHALL DEEM PROPER. IT IS NOT
NECESSARY THAT THE COLLATERAL BE PRESENT AT ANY DISPOSITION THEREOF. LENDER
SHALL HAVE NO OBLIGATION TO CLEAN-UP OR OTHERWISE PREPARE THE COLLATERAL FOR
DISPOSITION.
(ii)
The mention in a financing statement filed in the records
normally pertaining to personal property of any portion of the Property shall
not derogate from or impair in any manner the intention of this Security
Instrument. Lender hereby declares that all items of Collateral are part of the
real property encumbered hereby to the fullest extent permitted by law,