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in accordance with generally accepted accounting principles <br /> applied on a consistent basis . <br /> Section 4 . Remedies of the Secured Party Dpon Default: <br /> (a) If any of the following events shall occur : <br /> ( i) default in the payment or any of the other <br /> terms or conditions of the Note secured hereby and the <br /> expiration of any applicable grace or notice periods <br /> provided thereby; <br /> ( ii) failure by the Company to observe and perform <br /> any covenant, condition or agreement on the part of the <br /> Company under this Security Agreement other than Sec- <br /> ;, tion 6 hereof for a period of 30 days after written <br /> notice specifying such failure and requesting that it <br /> be remedied is given to the Company by the Secured <br /> Party unless the Secured Party shall agree in writing <br /> to an extension of such time prior to its expiration; <br /> provided, however, that if the failure stated in the <br /> notice cannot be reasonably corrected within the appli- <br /> cable period, such period shall be extended for the <br /> period of time reasonably required to correct such <br /> failure provided the Company promptly commences and <br /> diligently pursues the curing thereof; <br /> • <br /> (iii ) default in any of the terms, conditions or <br /> covenants contained in the Bond Purchase Agreement , the <br /> Loan Agreement, the Assignment, the Bond, the Deed of <br /> Trust, the Company Guaranty, the Personal Guaranty or <br /> any amendments and supplements thereto and the expira- <br /> tion of any applicable grace or notice periods provided <br /> thereby; or <br /> ( iv) any lien, charge or encumbrance prior to or <br /> affecting the validity of this Security Agreement is <br /> found to exist, other than Permitted Encumbrances, or <br /> proceedings be instituted to enforce any lien, charge <br /> or encumbrance against any of said Collateral and such <br /> lien, charge or encumbrance would be prior to the lien <br /> of this Security Agreement; <br /> then and in any of such events (hereinafter referred to as an <br /> "event of default" ) the Note shall, at the option of the Secured <br /> Party, become at once due and payable, regardless of the maturity <br /> date thereof. <br /> (b) If an event of default shall have occurred, the <br /> Secured Party may require the Company to assemble the Col- <br /> 5. <br />