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<br />1V. IT IS FURTHER AGREED THAT:
<br />A. Until default Debtor may retain passess6an of the collateral.
<br />8. Default shall exist herenrtder iF Delntor fails to perfraxni v:' di„sci><rge any Sbiigatian ur to pays pmrraptiy any
<br />indebtedness hereby secured or tv observe oc pert''orm any covena~nrs ar agreemerts iterein cr in any supplementary apyeement
<br />contained, or if any of Debtor's representations or warranties hereto prove false or misleading, or upor. the death, 5aakraptcy,
<br />insolvency ar iarnmpetercy of Debtor or any person so called herein. Upon any such defae;lt:
<br />1. Secured Party, at its option, with or without notice as permitted by law, may (a) declare the unpaid L..lanee on
<br />the Hate and any indebtedness secured hereby immediately due and payable, (bj enter upon the premises and take possession
<br />of, repair, improve, use, and operate the collateral ar make equipment unusable, fa Ehe purpose of protecting or preserving
<br />the Collates! or this lien, ar preparing o: prxessing the collateral far sale, and {c) exercise any sale or other rights sccarded
<br />by law.
<br />2. Debtor hereby (aj agrees to assemble ffie collateral and make it available to Secured Forty at such time(s)
<br />and place(s) as designated by Secured Forty, and (bj waives all notices, exemptions, compulsory disposition and redemption
<br />rights.
<br />3. A default shall exist under any other security instrument held oc insured by Secured Party and executed or
<br />assumed by Debtor on real ar personal property. Likewise, default urde: any such other security instsment snail constitute
<br />default hereunder.
<br />C. Proceeds from disposition of collateral shall be applied first on expenses of retaking, holding, preparing for
<br />sale, selling and the like and for payment of reasonable attorneys' fees and legal expenses incurred by Secured Party, second
<br />to the satisfaction of prior security interests or liens to the extent required by Iaw and in accordance with current regulations
<br />of the Farmers Home Administration, third to the satisfaction of indebtedness secured hereby, fourth to the satisfaction of
<br />subordinate security interests to the extent required by law, tifth to any other obligations of Debtor owing to oc insured by
<br />Secured Party, and sixth to Debtor. Any proceeds collected under instuance policies shall be applied first on advances
<br />and expenditures made by Secured Party, with interest, as hereinabave provided, second on the debt evidenced 6y the note,
<br />unless Secured Party consents in writing to their use by Debtor under Secured Party's direction for repair orreplacement aE
<br />the collateral, third on any other obligation of Debtor owing to or insured by Secured Party, and any balance shall be paid
<br />to Debtor unless otherwise provided in the insurance policy. Debtcr will be liable for any deficiency owed to Secured Party
<br />after such disposition cf proceeds of the coliateral and insurance.
<br />D. It is the intent o[ Debtor and Secured Party that to the extent permitted by law and for the purpose of this Agree-
<br />ment, no crollateral rovered hereby is or shall become realty or accessioned to other goods.
<br />E. This Agreement is subject to the present regulations of the Secured Party, and to its future regulations nc;
<br />inconsistent with the express provisions hereof.
<br />F. If nay pravisiari of this A~eem~tt is held invalid a: uneafcreeable, it shall not affRt nap nine: p:u:isiaas herE:,f,
<br />but this Agreement shall be construed as if it had never contained such invalid ar unenforceable provision.
<br />G. The rights and privileges of Secured Party under this Agreement shall inure to the benefit of its successors and
<br />assigns. All covenants, warranties, representations, and agreements of Debtor contained in this Agreement are joint and
<br />several and shall bind personal representatives, heirs, successors, and assigns.
<br />H. If at any time it shall appear to Secured Party that Debtor may be able to obtain a loan from a production credit
<br />assxiatian, a Federal land hank, or other responsible cooperative or private cr. lit source, at reasonable rates and terms
<br />for loans foc similar purposes and periods of time, Debtar will, upon Secured Party's request, apply for and accept such
<br />loan is sufficient amount to pay the note and any indebtedness secured hereby and to pay far any stock necessary to be
<br />purchased in a cooperative lending agency fa caanection with such loan.
<br />I. Secured Party shall have the sole and exclusive rights as the secured party hereurdet, including but not limited
<br />to the power to grant or issue any consent, release, subordination, continuation statement ar termination statement, and ao
<br />insured Iender shall have any right, title, or interest in ar to the security interest created by [Iris Agreement or any benefits
<br />hereof,
<br />j. SF.CUREU PARTY HAS INFORMED DEBTOR THAT DISPOSAL OF PROPERTY COVERED BY THIS SECURITY
<br />AGREEMENT WITHOEIT THE CONSENT OF SECURED PART OR MAKING ANY FAL5E STATEMENT IN THIS SECURITY
<br />AGREEMENT pR ANY pTHFR LOAN DOCUMk;NT, MA NSTITUTE A VIOLATION OF FEDERAL CRI1dINAL LAW_,
<br />{$~/~~)
<br />f»embe~ 1$r 1.97. -~ (SEAI)
<br />(care) lehtor)
<br />Lois J, Fianxton
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<br />t_._.
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