TO THE VALUE
OF THE ITEMS OF PROPERTY DESTROYED PRIOR TO SUCH DAMAGE OR DESTRUCTION.
(C)
BORROWER WILL NOT TAKE OUT SEPARATE
INSURANCE CONCURRENT IN FORM OR CONTRIBUTING IN THE EVENT OF LOSS WITH THAT
REQUIRED TO BE MAINTAINED UNDER THIS SECTION 5.6, UNLESS LENDER IS INCLUDED
THEREON AS NAMED INSURED WITH THE LOSS PAYABLE TO LENDER UNDER A LENDER'S LOSS
PAYABLE ENDORSEMENT OR ITS EQUIVALENT.
BORROWER IMMEDIATELY SHALL NOTIFY LENDER
WHENEVER SUCH SEPARATE INSURANCE IS TAKEN OUT, SPECIFYING THE INSURER THEREUNDER
AND FULL PARTICULARS AS TO THE POLICIES EVIDENCING THE SAME, AND COPIES OF SUCH
POLICIES PROMPTLY SHALL BE PROVIDED TO LENDER.
(D)
BORROWER WILL REQUIRE EACH TERM LOAN DEBTOR
TO MAINTAIN INSURANCE IN ACCORDANCE WITH ANY APPLICABLE SBA RULES AND
REGULATIONS AND BORROWER'S OPERATING GUIDELINES.
5.7
ACCOUNTS AND RECORDS.
BORROWER WILL KEEP
BOOKS OF RECORD AND ACCOUNT IN WHICH FULL, TRUE AND CORRECT ENTRIES WILL BE MADE
OF ALL DEALINGS OR TRANSACTIONS IN RELATION TO ITS BUSINESS AND ACTIVITIES, IN
ACCORDANCE WITH GAAP, CONSISTENTLY APPLIED EXCEPT ONLY FOR CHANGES IN ACCOUNTING
PRINCIPLES OR PRACTICES WITH WHICH BORROWER'S ACCOUNTANT CONCURS.
5.8
RIGHT OF INSPECTION.
LENDER (THROUGH ANY OF
ITS OFFICERS, EMPLOYEES, OR AGENTS) SHALL HAVE THE RIGHT, FROM TIME TO TIME
HEREAFTER, BUT SUBJECT TO SECTION 2.5(D), (I) DURING REGULAR BUSINESS HOURS TO
INSPECT THE BORROWER'S BOOKS AND RECORDS, OR THE SERVICER'S BOOKS AND RECORDS
RELATING TO THE COLLATERAL, AND TO MAKE COPIES OR ABSTRACTS THEREOF, (II) FROM
TIME TO TIME, TO COMMUNICATE DIRECTLY WITH ANY AND ALL TERM LOAN DEBTORS TO
VERIFY THE EXISTENCE AND TERMS OF THE SBA 7(A) LOAN OF SUCH TERM LOAN DEBTORS,
AND (III) FROM TIME TO TIME, TO CHECK, TEST, AND APPRAISE THE COLLATERAL, OR ANY
PORTION THEREOF, IN ORDER TO VERIFY BORROWER'S AND ITS SUBSIDIARIES' FINANCIAL
CONDITION OR THE AMOUNT, QUALITY, VALUE, CONDITION OF, OR ANY OTHER MATTER
RELATING TO, THE COLLATERAL, AND BORROWER SHALL, OR SHALL CAUSE SERVICER TO,
PERMIT ANY DESIGNATED REPRESENTATIVE OF
41
LENDER TO VISIT AND INSPECT ANY OF THE PROPERTIES OF BORROWER OR SERVICER TO
INSPECT AND TO DISCUSS BORROWER'S FINANCES AND PROPERTIES AND COLLATERAL, UPON
REASONABLE NOTICE AND AT SUCH REASONABLE TIMES DURING NORMAL BUSINESS HOURS AND
AS OFTEN AS MAY BE REASONABLY REQUESTED.
5.9
NOTICE OF CERTAIN EVENTS.
BORROWER SHALL
PROMPTLY NOTIFY LENDER IF IT LEARNS OF THE OCCURRENCE OF: (I) ANY EVENT WHICH
CONSTITUTES A DEFAULT OR AN EVENT OF DEFAULT, TOGETHER WITH A DETAILED STATEMENT
BY A RESPONSIBLE OFFICER OF BORROWER OF THE STEPS BEING TAKEN TO CURE THE EFFECT
OF SUCH DEFAULT OR EVENT OF DEFAULT; OR (II) THE RECEIPT OF ANY NOTICE FROM, OR
THE TAKING OF ANY OTHER ACTION BY, THE HOLDER OF ANY PROMISSORY NOTE, DEBENTURE
OR OTHER EVIDENCE OF INDEBTEDNESS OF BORROWER OR OF ANY SECURITY (AS DEFINED IN
THE SECURITIES ACT OF 1933, AS AMENDED) OF BORROWER WITH RESPECT TO A CLAIMED
DEFAULT, TOGETHER WITH A DETAILED STATEMENT BY A RESPONSIBLE OFFICER OF BORROWER
SPECIFYING THE NOTICE GIVEN OR OTHER ACTION TAKEN BY SUCH HOLDER AND