SUMS.
SECTION 1.3.
SECURITY AGREEMENT. THIS MORTGAGE
IS BOTH A REAL PROPERTY DEED OF TRUST AND A "SECURITY AGREEMENT" WITHIN THE
MEANING OF THE UNIFORM COMMERCIAL 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 MORTGAGE, BORROWER HEREBY GRANTS TO LENDER, AS SECURITY FOR THE OBLIGATIONS
(HEREINAFTER DEFINED), A SECURITY INTEREST IN THE FIXTURES, THE EQUIPMENT AND
THE PERSONAL PROPERTY AND OTHER PROPERTY CONSTITUTING THE PROPERTY, WHETHER NOW
OWNED OR HEREAFTER ACQUIRED, 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"). THE COLLATERAL IS OR INCLUDES FIXTURES. 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
5
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 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 COMMERCIALLY 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, DESCRIBED OR REFERRED TO IN THIS MORTGAGE,
AND THIS MORTGAGE, UPON BEING FILED FOR RECORD IN THE REAL ESTATE RECORDS OF THE
CITY OR COUNTY