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lawful manner which is not inconsistent with this agreement, any policy of insurance upon the <br />collateral, or the laws and regulations of this state. Debtor will maintain and keep the collateral in <br />good order and repair, and agrees not to use the collateral in any manner which results in waste, <br />unreasonable deterioration or depreciation. Secured party may enter upon the debtor's property <br />and inspect the collateral at any reasonable time. <br />Section 6.16. Possession of Collateral The Boi-~•ower shall have possession of the <br />Collateral, except where expressly otherwise provided in this Agreement or where the Secured <br />Party chooses to perfect its security interest by possession in addition to the filing of a financing <br />statement. Where Collateral is in the possession of a third party, the Borrower shall, at the <br />Bon•ower's expense, join with the Secw•ed Party in notifying the third party of the Secured <br />Party's security interest and obtaining an acknowledgment, in a foi7n and substance satisfactory <br />to the Secured Party, fi•om the third party that it is holding such Collateral for the benefit of the <br />Secured Party. <br />Section 6.17. Enforcement and Adjustment of Claims by Debtor Against Third <br />Persons. The debtor shall have unrestricted ti•eedom to enforce any claim against any third <br />person arising in connection with the collateral. The debtor in his discretion and in the exercise <br />of good faith and the observance of reasonable commercial standards may determine whether or <br />not to enforce, compromise, or forego the enforcement of any such claim whether based upon an <br />account, contract, or chattel paper or with respect to goods which have been or may be retw•ned <br />to or repossessed by the debtor. <br />Section 6.18. Care of Collateral. Debtor represents and warrants that the collateral will <br />be kept in the State of Indiana where the collateral is now located and agrees that the collateral <br />will not be removed from said State. <br />ARTICLE VII <br />Default <br />Section 7.1. Events of Default. <br />Debtor is in default wider this agreement upon the happening of one or more of the <br />following events or conditions: <br />a. Default in the payment or performance of the obligation; <br />b. If a warranty, representation or statement made or furnished by debtor to the <br />secw•ed party is false or proves to have been false in any material respect when it was made; <br />c. Loss, theft, damage, destruction, sale or encumbrance of the collateral or any part <br />of it, or a levy, seizure, or attachment of the collateral or any part of it; <br />d. Debtor's failure to perform any covenant in this agreement or the taking of action <br />by debtor which is inconsistent with or in violation of this agreement: or which endangers the <br />safety or integrity of the collateral or the security interest of secw•ed party; <br />e. Death, dissolution, termination of existence, insolvency, business failure, <br />appointment of a receiver for any part of any property belonging to debtor whether or not it is <br />9 <br />