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LOAN AND SECURITY AGREEMENT <br />Page3of7 <br />9. Financial records after a default – At any time the Borrower is in default or a payment due under <br />the Agreement is not made, the Borrower hereby authorizes the Company to make or cause to be <br />made, at the Borrower’s expense and in such manner and at such times as the Company require, <br />(a) inspections and audits of any books, records, and papers in custody or control of the Borrower <br />or others, relating to the Borrower’s financial or business conditions, including the making of copies <br />thereof and extracts thereof, and (b) inspections and appraisals of any Borrower assets. Should <br />the Borrower fail to make any payment due under the Agreement, the Borrower will furnish to the <br />Company for each one month period from the date of disbursement of the loan proceeds covered <br />by this Agreement, and for a six month period thereafter, and semiannually thereafter (no later than <br />30 days following the expiration of any such period), and at such other times and in such form as <br />the Company may prescribe, the financial and operating statement of the business. <br />10.Costs and expenses related to remedial action - The Borrower agrees that all costs and expenses <br />(including reasonable attorneys’ fees and expenses for legal services of every kind) of, or incidental <br />to, the custody, care, management, sale or collection of, or realization upon, any of the Collateral, <br />or in any way relating to the enforcement or protection of the Company’s rights under this <br />Agreement, shall be entitled to the benefits of this Agreement. The Company may at any time <br />apply to the payment of all such costs and expenses all monies of the Borrower or other proceeds <br />arising from the possession or disposition of all or any portion of the Collateral. <br />11.Other provisions regarding remedies – The Company may delay or refrain from exercising any <br />past, present, or future right or remedy hereunder without waiving any such right or remedy. The <br />Company shall have no obligation to proceed against real or personal property in preference to the <br />other. <br />PART FOUR – PROMISES BY THE BORROWER <br />12. The Borrower agrees that it will do the following: <br />12.1 Operate the Business in full compliance with applicable federal, state, and local laws, <br />including, without limitation, federal laws relating to equal employment opportunity and <br />occupational health and safety, the North Carolina State Building Code, and local building and <br />land use regulations. <br />12.2 Promptly perform all obligations of Borrower including the payment, when due, of all amounts <br />owed to Company secured by this Agreement; <br />12.3 Protect and properly care for the Collateral, and allow no Collateral to be misused, wasted, or <br />allowed to deteriorate except for normal wear and tear; <br />12.4 Use the Collateral principally within the State of North Carolina and Orange County, and not to <br />affix the Collateral to real property unless it is classified as a fixture hereinabove the requisite <br />information is supplied; <br />12.5 Insure all Collateral against theft, loss or destruction, by policies acceptable to Company and <br />payable to both Borrower and the Company as their interests may appear; that all applicable <br />licenses and permits be obtained; that the employer ID number be provided and a privilege <br />license be obtained; and that both property and liability insurance on the building(s) and <br />contents be procured and maintained by the Borrower. The Borrower shall provide and <br />maintain hazard insurance (fire and extended coverage) in an amount acceptable to the <br />Company covering all tangible Collateral. Mortgagee endorsement is to include this loan. <br />12.6 Pay promptly when due all ad valorem taxes and assessments upon the Collateral; <br />DocuSign Envelope ID: 13893DB1-E609-41AD-9B91-B891B8DC7CA8