REPAID AND PERFORMED AND BANK'S OBLIGATION TO PROVIDE CREDIT EXTENSIONS
TERMINATES.
9.3
PROTECTIVE PAYMENTS.
IF BORROWER FAILS TO OBTAIN THE INSURANCE
CALLED FOR BY SECTION 6.4 OR FAILS TO PAY ANY PREMIUM THEREON OR FAILS TO PAY
ANY OTHER AMOUNT WHICH BORROWER IS OBLIGATED TO PAY UNDER THIS EXIM AGREEMENT OR
ANY OTHER LOAN DOCUMENT, BANK MAY OBTAIN SUCH INSURANCE OR MAKE SUCH PAYMENT,
AND ALL AMOUNTS SO PAID BY BANK ARE BANK EXPENSES AND IMMEDIATELY DUE AND
PAYABLE, BEARING INTEREST AT THE THEN HIGHEST APPLICABLE RATE, AND SECURED BY
THE COLLATERAL.
BANK WILL MAKE REASONABLE EFFORTS TO PROVIDE BORROWER WITH
NOTICE OF BANK OBTAINING SUCH INSURANCE AT THE TIME IT IS OBTAINED OR WITHIN A
REASONABLE TIME THEREAFTER.
NO PAYMENTS BY BANK ARE DEEMED AN AGREEMENT TO MAKE
SIMILAR PAYMENTS IN THE FUTURE OR BANK'S WAIVER OF ANY EVENT OF DEFAULT.
9.4
APPLICATION OF PAYMENTS AND PROCEEDS.
BORROWER SHALL HAVE NO
RIGHT TO SPECIFY THE ORDER OR THE ACCOUNTS TO WHICH BANK SHALL ALLOCATE OR APPLY
ANY PAYMENTS REQUIRED TO BE MADE BY BORROWER TO BANK OR OTHERWISE RECEIVED BY
BANK UNDER THIS EXIM AGREEMENT WHEN ANY SUCH ALLOCATION OR APPLICATION IS NOT
SPECIFIED ELSEWHERE IN THIS EXIM AGREEMENT.
IF AN EVENT OF DEFAULT HAS OCCURRED
AND IS CONTINUING, BANK MAY APPLY ANY FUNDS IN ITS POSSESSION, WHETHER FROM
BORROWER ACCOUNT BALANCES, PAYMENTS, PROCEEDS REALIZED AS THE RESULT OF ANY
COLLECTION OF ACCOUNTS OR OTHER DISPOSITION OF THE COLLATERAL, OR OTHERWISE, TO
THE OBLIGATIONS IN SUCH ORDER AS BANK SHALL DETERMINE IN ITS SOLE DISCRETION.
ANY SURPLUS SHALL BE PAID TO BORROWER OR OTHER PERSONS LEGALLY ENTITLED THERETO;
BORROWER SHALL REMAIN LIABLE TO BANK FOR ANY DEFICIENCY.
IF BANK, IN ITS GOOD
FAITH BUSINESS JUDGMENT, DIRECTLY OR INDIRECTLY ENTERS INTO A DEFERRED PAYMENT
OR OTHER CREDIT TRANSACTION WITH ANY PURCHASER AT ANY SALE OF COLLATERAL, BANK
SHALL HAVE THE OPTION, EXERCISABLE AT ANY TIME, OF EITHER REDUCING THE
OBLIGATIONS BY THE PRINCIPAL AMOUNT OF THE PURCHASE PRICE OR DEFERRING THE
REDUCTION OF THE OBLIGATIONS UNTIL THE ACTUAL RECEIPT BY BANK OF CASH THEREFOR.
9.5
BANK'S LIABILITY FOR COLLATERAL.
SO LONG AS BANK COMPLIES WITH
REASONABLE BANKING PRACTICES REGARDING THE SAFEKEEPING OF THE COLLATERAL IN THE
POSSESSION OR UNDER THE CONTROL OF BANK, BANK SHALL NOT BE LIABLE OR RESPONSIBLE
FOR: (A) THE SAFEKEEPING OF THE COLLATERAL; (B) ANY LOSS OR DAMAGE TO THE
COLLATERAL; (C) ANY DIMINUTION IN
9
the value of the Collateral; or (d) any act or default of any carrier,
warehouseman, bailee, or other Person.
Borrower bears all risk of loss, damage
or destruction of the Collateral.
9.6
NO WAIVER; REMEDIES CUMULATIVE.
BANK'S FAILURE, AT ANY TIME OR
TIMES, TO REQUIRE STRICT PERFORMANCE BY BORROWER OF ANY PROVISION OF THIS EXIM
AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL NOT WAIVE, AFFECT, OR DIMINISH ANY
RIGHT OF BANK THEREAFTER TO DEMAND STRICT PERFORMANCE AND COMPLIANCE HEREWITH OR
THEREWITH.
NO WAIVER HEREUNDER SHALL BE EFFECTIVE UNLESS SIGNED BY BANK AND
THEN IS ONLY EFFECTIVE FOR THE SPECIFIC