Agenda - 06-24-1986 - Laserfiche WebLink

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Section 1 . Defeasance. The Company represents and warrants to the Authority that it is, or at the time of acquisition will be, the holder of marketable title to the Collateral free and clear of any liens, security interests and encumbrances other than Permitted Encumbrances (as defined in the Loan Agreement ) . If the Company shall pay the Note secured hereby in accordance with its terms, together with interest thereon and premium, if any, and all taxes, charges, assessments and any premiums for in- surance hereby secured, and, further, shall comply with all the covenants, terms and conditions of this Security Agreement, the Bond Purchase Agreement, the Loan Agreement, the Note, the Deed of Trust and the Company Guaranty and any amendments and supple- ments thereto, then this Security Agreement shall be null and void and may be cancelled of record at the request and at the cost of the Company. Section 2. Maintenance and Modification of Collateral by Company. The Secured Party shall not be under any obligation to operate, maintain or repair the Collateral. The Company agrees that until Payment of the Bond (as defined in the Loan Agreement) shall be made it will at its own expense ( i ) keep the Collateral in as reasonably safe condition as its operations shall permit, ( ii) keep the Collateral in good repair and in good operating condition, and (iii) make from time to time all necessary repairs thereto and renewals and replacements thereof. The Company shall not permit or suffer others to commit a nuisance in or about the Project Site or itself commit a nuisance in connection with its use or occupancy of the Project Site. The Company may, also at its own expense, make from time to time any additions, modifications or improvements to the Collat- eral that it may deem desirable for its business purposes and that do not materially impair the effective use, nor materially decrease the value, of the Collateral. All such additions, modi- fications and improvements so made by the Company shall become a part of the Equipment Collateral. The Company will pay any rea- sonable cost (including the attorneys' fees) incurred in subject- ing such property to the lien of this Security Agreement. Section 3. Removal of Equipment. In any instance where the Company in its sole discretion determines that any items of Col- lateral have become inadequate, obsolete, worn-out, unsuitable, undesirable or unnecessary, the Company may remove such items of Collateral from the Project Site and sell, trade in, exchange or otherwise dispose of such items (as a whole or piecemeal) , pro- vided that the Company shall, without impairing the operating unity of the Collateral, either : (a) substitute and install anywhere on the Project Site other machinery, equipment or related property having 3.