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Boi7•ower will neither use the Equipment nor permit the Equipment to be used, for any unlawful <br />purpose or contrary to any statute, law, ordinance or regulation relating to the registration, use, <br />operation or control of the Equipment. <br />Section 5.5. Transfers of Equipment. The Borrower may from time to time substitute <br />Equipment; provided that: (a) the substituted Equipment is not subject to any lien or other <br />encumbrance and has a fair market value at least equal to the fair market of the Equipment for <br />which it is substituted; (b) the marketability and operating intefn•ity of the Bonrower's Equipment <br />after such substitution is not impaired; (c) the Equipment substituted for is no longer used or <br />useful in the operation of the Borrower's business and is sold in arm's length transaction in <br />exchange for money or monies' worth at least equal to the fair market value of such Equipment <br />substituted for; and (d) no Default or Unmatured Default has occu~-~•ed and is continuing. <br />ARTICLE VI <br />General Provisions Concerning Collateral <br />Section 6.1. Title to Collateral. All Collateral acquired after the date hereof will be <br />acquired by the Borrower fi•ee of any lien, security interest or encumbrance. Debtor will defend <br />the collateral against claims and demands made by all persons claiming either the collateral or <br />any interest in it. <br />Section 6.2. Further Assurances. The Bon•ower agrees to do such reasonable acts and <br />things and deliver or cause to be delivered such• other documents as the Secured Party may deem <br />necessary to establish and maintain a valid security interest in the Collateral (fi•ee of all other <br />liens and claims except Pe~7nitted Encumbrances) to secure the payment and performance of the <br />Liabilities and to defend title to the Collateral against any Person claiming any interest therein <br />adverse to the Secured Party. The Boi7•ower authorizes and appoints the Secured Party its <br />attorney-in-fact, at the expense of the Borrower, to execute and file a financing statement or <br />statements on its behalf in those public offices deemed advisable or necessary by the Secured <br />Party to protect the security interests of the Secured Party herein granted. The Borrower further <br />authorizes and appoints the Secured Party its attorney-in-fact, at the expense of the Bon•ower, to <br />execute and file a financing statement or statements on its behalf in those public offices deemed <br />advisable or necessary by the Secured Party describing any Abn•icultural Liens or other statutory <br />liens granted by the Bon•ower to the Secured Party hereunder. If permitted by law, the Borrower <br />agrees that a carbon, photographic or other reproduction of this Agreement or of a financing <br />statement may be tiled as a financing statement. <br />Section 6.3. Insurance and Risk of Loss. The risk of loss of the collateral is on the <br />debtor. The debtor shall maintain insurance at all times on the collateral against risks of fire, <br />(including extended coverage), theft and such other risk as the secw•ed party requires. In the case <br />of mobile goods, the debtor shall also maintain collision coverage. The secured party has the <br />authority to specify the teens of the policy, the fo17n of the policy, the underwriter, and the <br />length of te17n of the policy. Each policy shall be endorsed with a standard mortgagee or security <br />interest clause for the benefit of the secured party. If the secured party demands it, debtor shall <br />6 <br />