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( 1) Application of Proceeds <br /> If no default or event of default (as defined in Section 9 . 1 <br /> of the Loan Agreement) shall have occurred, all funds covered by <br /> this Assignment shall be paid and applied as follows: <br /> (a) each payment to be made pursuant to the Note shall <br /> be paid by the Company directly to the Assignee on or before <br /> the due date of such payment under the Loan Agreement, and <br /> shall be applied in accordance with the terms of the Bond; <br /> (b) all amounts prepaid or paid by the Company pursu- <br /> ant to Sections 10 .1, 10. 2 and 10. 3 of the ' pan Agreement <br /> shall be paid to the Assignee and applied to :.ae prepayment <br /> or payment of the Bond, as provided in the Loan Agreement <br /> and the Bond; and <br /> (c)- all other funds covered by this Assignment ( in- <br /> cluding any excess of any payment over the concurrent aggre- <br /> gate payments due on the Bond) shall be applied as provided <br /> in the Loan Agreement and the Bond. <br /> If any default or event of default under the Loan Agreement <br /> shall have occurred, all funds covered by this Assignment shall <br /> be paid to the Assignee who shall hold all funds received and <br /> shall apply the same in the manner specified in Section 9. 3 of <br /> the Loan Agreement and in the Bond. <br /> ( 2) Assignee Not Liable for Obligations of Others <br /> Neither this Assignment nor any action or inaction on the <br /> part of the Assignee shall, without its written consent, consti- <br /> tute an assumption on its part of any obligation under any of the <br /> Bond Documents; nor shall the Assignee have any obligation to <br /> make any payment to be made by the Assignor under any of the Bond <br /> Documents, or to present or file any claim, or to take any other <br /> action to collect or enforce the payment of any amounts which <br /> have been assigned to the Assignee or to which they may be en- <br /> titled under this Assignment at any time or times. No action or <br /> inaction on the part of the Assignee shall adversely affect or <br /> limit in any way the rights of the Assignee under this Assignment <br /> or any of the Bond Documents. <br /> The Assignor shall, however, remain liable to perform all of <br /> its obligations under the Bond Documents and shall enforce the <br /> Bond Documents in accordance with their respective terms, main- <br /> tain the Bond Documents in full force and effect and comply with <br /> all the terms of each thereof. <br /> 4. <br />