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Installment Financing Contract will be subject to a minimum fee of one-half percent <br />(.5%~. <br />SECTION 4. NATURE OF CONTRACT <br />This Contract is an installment contract and security agreement pursuant to Section <br />160A-20 and Article 9 of Chapter 25 (the "Uniform Commercial Code - Secured <br />Transactions") of the General Statutes of North Carolina. <br />SECTION 5. RESPONSIBILITIES AND COVENANTS OF THE COUNTY <br />5.1. Care and Use. The County shall use the Equipment in a careful and <br />proper manner, in compliance with all applicable laws and requisitions, and, at its sole <br />cost and expense or at the cost or expense of a third party other than the Bank, shall <br />service, repair and maintain the Equipment so as to keep the Equipment in good <br />condition, repair, appearance and working order for the purposes intended, ordinary wear <br />and tear excepted, and shall replace any part of the Equipment as may from time to time <br />become worn out, lost, stolen, destroyed or damaged or is unfit for use. Any and all <br />additions to or replacements of the Equipment and all parts thereof shall constitute <br />accessions to the Equipment and shall be subject to all terms and conditions of this <br />Contract and included in the term "Equipment" as used in this Contract. If requested by <br />the Bank, the County shall enter into or cause to be entered into, and maintained in full <br />force and effect during the term of this Contract, manufacturer's or supplier's standard <br />maintenance contracts satisfactory to the Bank covering the Equipment and shall comply <br />with all of its obligations thereunder. The County shall furnish evidence to the Bank <br />upon Bank's request of such signed maintenance contracts at or prior to the date of this <br />.Contract and the payment of all charges and premiums therefor. <br />5.2. Inspection. The Bank shall have the right upon reasonable prior notice to <br />the County to enter into and upon the premises where the Equipment is located to inspect <br />the Equipment and observe its. use during normal business hours. <br />5.3. Alterations. Without the prior written consent of the Bank, which consent <br />shall not be unreasonably withheld, the County shall not make any alterations, <br />modifications or attachments to the Equipment which cannot be removed without <br />materially damaging the functional capabilities or economic value of the Equipment. <br />5.4. Utilities. The County shall pay, when due, all charges for utility services <br />used in connection with the Equipment. There shall be no abatement of the Installment <br />Payments on account of interruption of any such services. <br />5.5. Taxes. The County shall pay, when due, any and all taxes levied by any <br />governmental body as a result of the County's ownership, possession, or use of the <br />Equipment or as a direct or indirect result of the purchase of the Equipment by the <br />County. <br />5.6. .Risk of Loss. Subject to the provisions of Section 13 hereof entitled <br />"Limited Obligation of the County," the County shall bear all risk of loss to and <br />4 <br />