6E(3) Blackthorn Golf Course Financing Agreement

Home Browse Search

funlish secured party with certificates or other evidence of insurance in form satisfactory to secured party. Debtor authorizes and appoints the secured party to act as debtor's agent in obtaining and cancelling insurance or in adjusting and settling losses under the insurance on the collateral. Section 6.4. Risk of Loss-Accidental Loss. The risk of loss of or damage to the collateral due to accident is on the debtor to the extent of any deficiency in insurance coverage on the collateral protecting or benefitting the secured party. Section 6.5. Insurance. (a) The Borrower shall have and maintain at all trines, with respect to the Equipment, insurance written by companies acceptable to the Secured Party covering risks customarily insured against by companies engaged in business similar to that of the Bon•ower in reasonable amounts, containing such tenl~s, in such form, and for such periods customarily maintained by companies engaged in business similar to drat of the Bon-ower. All such casualty insurance policies shall be payable to the Borrower and the Secured Party, as their interests may appear and the Secured Party's interest shall be covered through a standard non-contributory the Secured Party's loss payable clause. All such liability insurance policies shall name the Secured Party as an additional insured. The insurance certificates evidencing the Bon-ower's compliance with the above shall be deposited with the Secured Party, and in the event the Borrower fails to file and maintain such insurance, the Secured Party may, at its option, purchase such insurance and the cost of such insurance shall become a Liability secured by these presents and all sums expended shall bear interest at the default rate of interest set forth in the Note until paid. (b) In addition to the insurance requirements set forth herein, the Bon-ower will cant' any other insurance and amounts for periods as maybe reasonably required by the Secured Party, and will deliver to the Secw-ed Party, not less than ten (10) Business Days prior to the expiration of any such policy of insurance, renewals or new policies in like amounts covering the same risks. All such insurance policies shall cant' standard, non-contributory the Secured Party's loss payable clauses and breach of wan-anty endorsements, in favor of the Secured Party. The Borrower shall deliver certified copies of such policies to the Secured Party and shall pay all premiums thereon promptly when due and shall provide substitute policies of insurance should the Secured Party at any time reject, for reasonable cause, any such policies of insurance furnished by the Bon-ower. The Borrower hereby collaterally assigns to the Secured Party, the proceeds of all such insurance, including, without limitation, any premium refunds, to the extent of the Liabilities and appoints the Secured Party its attorney-in fact to endorse any draft, check or other form of payment made by such insurer. If a Default or Unmatured Default shall have occun-ed and be continuing unremedied, the Secured Party may, as attorney-in-fact, direct the insurer to make payment of any losses or refunds directly to the Secured Party. Section 6.6. Taxes and Encumbrances. Debtor will promptly pay when due all taxes, assessments, liens and encumbrances levied against the collateral or upon the use of the collateral or upon operations in which the collateral is used, or those levied against the note or evidence of the obligation secured by this agreement Secured party may discharge an encumbrance at any time it is levied or placed upon the collateral. Section 6.7. Location and Identification of Collateral. Debtor will keep the collateral 7