2018-686-E Economic Dev - Beau Catering Loan Document

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LOAN AND SECURITY AGREEMENT Page 3 of 6 9.Financial records after a default –At any time the Borrower is in default or a payment due under the Agreement is not made, the Borrower hereby authorizes the Fundto make or cause to be made, at the Borrower’s expense and in such manner and at such times as the Fundrequire, (a) inspections and audits of any books, records, and papers in custody or control of the Borrower or others, relating to the Borrower’s financial or business conditions, including the making of copies thereof and extracts thereof, and (b) inspections and appraisals of any Borrower assets. Should the Borrower fail to make any payment due under the Agreement, the Borrower will furnish to the Fundfor each one month period from the date of disbursement of the loan proceeds covered by this Agreement, and for a six month period thereafter, and semiannually thereafter (no later than 30 days following the expiration of any such period), and at such other times and in such form as the Fundmay prescribe, the financial and operating statement of the business. 10.Costs and expenses related to remedial action -The Borrower agrees that all costs and expenses (including reasonable attorneys’ fees and expenses for legal services of every kind) of, or incidental to, the custody, care, management, sale or collection of, or realization upon, any of the Collateral, or in any way relating to the enforcement or protection of the Fund’s rights under this Agreement, shall be entitled to the benefits of this Agreement. The Fundmay at any time apply to the payment of all such costs and expenses all monies of the Borrower or other proceeds arising from the possession or disposition of all or any portion of the Collateral. 11.Other provisions regarding remedies –The Fundmay delay or refrain from exercising any past, present, or future right or remedy hereunder without waiving any such right or remedy. The Fund shall have no obligation to proceed against real or personal property in preference to the other. PART FOUR –PROMISES BY THE BORROWER 12.The Borrower agrees that it will do the following: 12.1Operate the Business in full compliance with applicable federal, state, and local laws, including, without limitation, federal laws relating to equal employment opportunity and occupational health and safety, the North Carolina State Building Code, and local building and land use regulations. 12.2Promptly perform all obligations of Borrower including the payment, when due, of all amounts owed to Fundsecured by this Agreement; 12.3Protect and properly care for the Collateral, and allow no Collateral to be misused, wasted, or allowed to deteriorate except for normal wear and tear; 12.4Use the Collateral principally within the State of North Carolina and Orange County, and not to affix the Collateral to real property unless it is classified as a fixture hereinabove the requisite information is supplied; 12.5Insure all Collateral againsttheft, loss or destruction, by policies acceptable to Fundand payable to both Borrowerand the Fundas their interests may appear; that all applicable licenses and permits be obtained; that the employer ID number be provided and a privilege license be obtained; and that both property and liability insurance on the building(s)and contents be procured and maintained by the Borrower. The Borrowershall provide and maintain hazard insurance (fire and extended coverage) in an amount acceptable to the Fund covering all tangible Collateral.Mortgagee endorsement is to include this loan. 12.6Pay promptly when due all advalorem taxes and assessments upon the Collateral; 12.7Upon the Fund’s request, deposit with Fundadditional Collateral to Fund’s satisfaction; DocuSign Envelope ID: 71A540D4-95BC-4724-9E65-6A85543C95A9