6E(3) Blackthorn Golf Course Financing Agreement

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separate and identifiable and at the location described in this agreement. Debtor agrees not to remove the collateral fi•om the location specified without the secured party's written consent. Section 6.8. Collection of Collateral. The Borrower shall, at its own expense, endeavor to collect, as and when due, all amounts due with respect to any Collateral including the taking of such action with respect to such collection as the Secured Party may reasonably request or, in the absence of such request, as the Borrower may deem advisable. Section 6.9. Se~re~ation of Collateral. The secured party shall at all times keep the collateral in his possession segregated and marked in an appropriate way so that it can be reasonably identified. Section 6.10. The Secured Party May Defend Title. In the event the Boi-~•ower fails to pay any taxes, assessments or premiums, or fails to discharge any material liens or claims against the Collateral required to be paid or discharged by the Borrower, or fails to purchase, maintain and file with the Secured Party any insurance required by this Agreement, in the Secured Party's reasonable discretion, the Secured Party may, without demand or notice, pay any such taxes, assessments or premiums, or pay, acquire, satisfy or discharge any liens or claims asserted against the Collateral (without any obligation to determine the validity thereof), or purchase any such insurance. All sums so expended by the Secured Party shall become a Liability secured by these presents and shall bear interest at the highest Default rate of interest set forth in the Note until paid. Section 6.11. Contracts. The Borrower shall remain liable to perform its obligations under any contracts included in the Collateral to the extent as though this Agreement had not been entered into, and the Secured Party shall not have any obligation under any such contracts by reason of this Agreement. Section 6.12. Accounting Svstem. The Bor•ower shall maintain a standard and modern system of accounting in accordance with GAAP which contains information pertaining to the Collateral that may ti•om time to time be requested by the Secured Party. Section 6.13. Inspection of Collateral and Records. During the Borrower's usual business hours, the Secured Party may inspect and examine the Collateral and check and test the same as to quality, quantity, value, and condition. The Secured Party shall also have the 1-ight at any time or times hereafter, during the Borrower's usual business hours or during the usual business hours of any third party having control over the records of the Borrower (including the Borrower's accountants), to inspect the Borrower's books and records in order to verify the amount or condition of, or any other matter relatin~~ to, the Collateral and the Borrower's financial condition and to copy and make exh•acts from such books and records. Section 6.14. Transfer of Collateral The Borrower shall not sell, lease, license, transfer or otherwise dispose of any interest in any Collateral. Section 6.15. Possession, Use, Maintenance and Lispection of Collateral Until default, debtor may have possession of the collateral. Debtor may use the collateral in any 8