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appropriation for Installment Payments in a proposed budget, the County may terminate all <br />its obligations hereunder by not appropriating sufficient funds to make the scheduled <br />Installment Payments. In the event the Governing Body determines not to appropriate in its <br />budget an amount sufficient to pay all Installment Payments coming due in the applicable <br />fiscal year, the Governing Body shall adopt a resolution specifically deleting such <br />appropriation from the proposed budget for that fiscal year. Such resolution shall state the <br />reasons for such deletion, shall be adopted by a vote identifying those voting for and against <br />and abstaining from the resolution, and shall be recorded in the minutes of the Governing <br />Body. A copy of such resolution shall be promptly sent to the Bank. Such failure to <br />appropriate shall constitute an Event of Default. <br />(c) If the amount equal to the Installment Payments which will be due during the <br />next fiscal year has not been appropriated by the County in its budget, the Manager shall <br />deliver to the Bank, within ten (10) days after the adoption of the County's budget for such <br />fiscal year, but not later than fifteen (15) days after the start of such fiscal year, a certificate <br />from the Finance Officer of the County stating that the County did not make such <br />appropriation. <br />SECTION 6. SECURITY INTEREST; LIENS <br />6.1. Security Interest. The County hereby grants to the Bank a security <br />interest in the Equipment and in any and all additions, accessions, repairs, replacements, <br />substitutions, and modifications to the Equipment, and all proceeds of all the foregoing, <br />including any insurance proceeds paid because of loss or damage to the Equipment to the <br />extent necessary to secure the County 's payment obligations to the Bank under this <br />Contract. The County shall cause to be filed, at the County 's expense, financing <br />statements and other related documents that are necessary under Article 9 of Chapter 25 <br />(the "Uniform Commercial Code -Secured Transactions") of the General Statutes of <br />North Carolina to perfect a first lien security interest by filing and to maintain that first <br />lien security interest in perfected form. If the Equipment is or includes one or more <br />motor vehicles, the ownership of which is or are evidenced by a certificate of title(s), the <br />County shall cause the Bank's lien to be properly shown on such title(s) as a first lien <br />security interest. <br />The Equipment is and shall throughout the term of this Contract be and remain <br />personal property, regardless of whether the Equipment is now or may become in any <br />manner affixed or attached to real estate or any building or fixtures on real estate. No <br />portion of the Equipment maybe affixed or attached to real estate or any building or fixtures <br />on real estate. If the Equipment is permanently located on any real estate, not owned in fee <br />simple by the County , or if such real estate, is subject to any liens, the County shall obtain <br />a waiver of any rights in and to the Equipment (including the rights of levy and distraint) <br />from the person who gives the County permission to use the real property on which the <br />Equipment is located and from any holder of liens on the real estate on which the Equipment <br />is located. <br />6.2. Liens. The County shall not directly or indirectly create, incur, assume or <br />suffer to exist any lien, charge, security interest, encumbrance or claim on or with respect <br />7 <br />