CODE.
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.
BY EXECUTING AND DELIVERING THIS SECURITY
INSTRUMENT, BORROWER HEREBY GRANTS TO LENDER, AS SECURITY FOR THE OBLIGATIONS
(HEREINAFTER DEFINED), A SECURITY INTEREST IN THE FIXTURES, THE EQUIPMENT AND
THE PERSONAL PROPERTY TO THE FULL EXTENT THAT THE FIXTURES, THE EQUIPMENT AND
THE PERSONAL PROPERTY MAY BE SUBJECT TO THE UNIFORM COMMERCIAL CODE (SAID
PORTION OF THE PROPERTY SO SUBJECT TO THE UNIFORM COMMERCIAL CODE BEING CALLED
THE "COLLATERAL").
IF AN EVENT OF DEFAULT SHALL OCCUR AND BE CONTINUING,
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 UNIFORM COMMERCIAL
CODE, 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 AFTER
6
THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, BORROWER
SHALL, AT ITS EXPENSE, ASSEMBLE THE COLLATERAL AND MAKE IT AVAILABLE TO LENDER
AT A CONVENIENT PLACE (AT THE LAND IF TANGIBLE PROPERTY) REASONABLY 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 AFTER THE OCCURRENCE AND DURING THE
CONTINUANCE OF AN EVENT OF DEFAULT.
ANY NOTICE OF SALE, DISPOSITION OR OTHER
INTENDED ACTION BY LENDER WITH RESPECT TO THE COLLATERAL SENT TO BORROWER IN
ACCORDANCE WITH THE PROVISIONS HEREOF AT LEAST TEN (10) BUSINESS DAYS PRIOR TO
SUCH ACTION, SHALL, EXCEPT AS OTHERWISE PROVIDED BY APPLICABLE LAW, CONSTITUTE
REASONABLE NOTICE TO BORROWER.
THE PROCEEDS OF ANY DISPOSITION OF THE
COLLATERAL, OR ANY PART THEREOF, MAY, EXCEPT AS OTHERWISE REQUIRED BY APPLICABLE
LAW, BE APPLIED BY LENDER TO THE PAYMENT OF THE DEBT IN SUCH PRIORITY AND
PROPORTIONS AS LENDER IN ITS DISCRETION SHALL DEEM PROPER.
BORROWER'S
(DEBTOR'S) PRINCIPAL PLACE OF BUSINESS IS AS SET FORTH ON PAGE ONE HEREOF AND
THE ADDRESS OF LENDER (SECURED PARTY) IS AS SET FORTH ON PAGE ONE HEREOF.
SECTION 1.4
FIXTURE FILING.
CERTAIN OF THE PROPERTY IS OR WILL
BECOME "FIXTURES" (AS THAT TERM IS DEFINED IN THE UNIFORM COMMERCIAL CODE) ON
THE LAND, AND THIS SECURITY INSTRUMENT, UPON BEING FILED FOR RECORD IN THE REAL
ESTATE RECORDS OF THE CITY OR COUNTY WHEREIN SUCH FIXTURES ARE SITUATED, SHALL
OPERATE ALSO AS A FINANCING STATEMENT FILED AS A FIXTURE FILING IN ACCORDANCE
WITH THE APPLICABLE PROVISIONS OF SAID UNIFORM COMMERCIAL CODE UPON SUCH OF THE
PROPERTY THAT IS OR MAY BECOME FIXTURES.
THE ADDRESSES OF THE DEBTOR (BORROWER)
AND THE SECURED PARTY (LENDER)