Provisions Concerning Pledged Collateral. (a) Protection of Secured Party's Security. Debtor shall not take any action that impairs the rights of Secured Party in the Pledged Collateral. Debtor shall at all times keep the tangible Pledged Collateral insured in favor of Secured Party, at the Debtor's own expense, to Secured Party's reasonable satisfaction against fire, theft and all other risks to which the Pledged Collateral may be subject, in such amounts (but in no event greater than the replacement cost thereof) and with such deductibles as would be maintained by operators of businesses similar to the business of Debtor or as Secured Party may otherwise require. Each policy or certificate with respect to such insurance shall be endorsed to Secured Party's satisfaction for the benefit of Secured Party (including, without limitation, by naming Secured Party as an additional named insured or an additional loss payee as Secured Party may request) and such policy or certificate shall be delivered to Secured Party. Each such policy shall state that it cannot be canceled without 30 days' prior written notice to Secured Party. At least 30 days prior to the expiration of any such policy of insurance, Debtor shall deliver to Secured Party an extension or renewal policy or an insurance certificate evidencing renewal or extension of such policy. If Debtor shall fail to insure such Pledged Collateral to Secured Party's reasonable satisfaction or if Debtor shall fail to so endorse and deposit, or to extend or renew, all such insurance policies or certificates with respect thereto, Secured Party shall have the right (but shall be under no obligation) to advance funds to procure or renew or extend such insurance and Debtor agrees to reimburse Secured Party for all costs and expenses thereof, with interest on all such funds from the date advanced at the highest rate then payable under the Note. In the event of insurable loss or damage to any Pledged Collateral, then Secured Party must use such proceeds to repair, replace or improve damaged Pledged Collateral unless Secured Party within thirty (30) days after the receipt of such proceeds commences the repossession of the Pledged Collateral upon an Event of Default in accordance with the provisions of Section 5 hereof.
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Provisions Concerning Pledged Collateral. (a) Protection of Secured Party's Security. Debtor shall not take any action that impairs the rights of Secured Party in the Pledged Collateral. Debtor shall at all times keep the tangible Pledged Collateral insured in favor of Secured Party, at the Debtor's own expense, to Secured Party's reasonable satisfaction against fire, theft and all other risks to which the Pledged Collateral may be subject, in such amounts (but in no event greater than the replacement cost thereof) and with such deductibles as would be maintained by operators of businesses similar to the business of Debtor or as Secured Party may otherwise require. Each policy or certificate with respect to such insurance shall be endorsed to Secured Party's satisfaction for the benefit of Secured Party (including, without limitation, by naming Secured Party as an additional named insured or an additional loss payee as Secured Party may request) and such policy or certificate shall be delivered to Secured Party. Each such policy shall state that it cannot be canceled without 30 days' prior written notice to Secured Party. At least 30 days prior to the expiration of any such policy of insurance, Debtor shall deliver to Secured Party an extension or renewal policy or an insurance certificate evidencing renewal or extension of such policy. If Debtor shall fail to insure such Pledged Collateral to Secured Party's reasonable satisfaction or if Debtor shall fail to so endorse and deposit, or to extend or renew, all such insurance policies or certificates with respect thereto, Secured Party shall have the right (but shall be under no obligation) to advance funds to procure or renew or extend such insurance and Debtor agrees to reimburse Secured Party for all costs and expenses thereof, with interest on all such funds from the date advanced at the highest rate then payable under the NoteNotes. In the event of insurable loss or damage to any Pledged Collateral, then Secured Party must use such proceeds to repair, replace or improve damaged Pledged Collateral unless Secured Party within thirty (30) days after the receipt of such proceeds commences the repossession of the Pledged Collateral upon an Event of Default in accordance with the provisions of Section 5 hereof.
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