SECURITY AGREEMENT
The undersigned debtor, meaning all debtors jointly and severally
("Debtor"), to secure the obligations set forth herein grants to the secured
party named below herein, with its successors and assigns, (called "Secured
Party") under the terms and provisions of this agreement (this "Agreement") a
security interest in the following described property (herein, with all present
and future attachments, accessories, replacement parts, repairs and additions or
substitutions, referred to collectively as "Equipment"):
(Describe the Equipment, including all major attachments, fully, including make,
kind of unit, model, serial numbers and other pertinent information.)
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The Equipment will be used primarily for: ( ) business or commercial use other
than farming operations; ( ) farming operations. When not in use, the Equipment
will be kept at:
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(Street Address)
and, when in use, will be used only in the following State(s):
PAYMENT SCHEDULE USE OF PROCEEDS
Debtor promises to pay Secured Party the Total Secured Party is hereby irrevocably authorized
Amount of $____________ (the "Total Amount") in and directed to disburse the proceeds of this
______________ installments as follows: Agreement as follows:
Amount Payee (Name and Address)
(a) $_____________ on _________________, and a $
like sum on the like date of each month
thereafter until fully paid:
or
(b) $
$
Debtor hereby acknowledges and agrees that the
proceeds of this Agreement will be used for
commercial, business or agricultural purposes and
will not be used for personal, family or
household purposes. Secured Party may disburse
the proceeds using checks, drafts, orders,
provided, however, that the final installment transfer funds, or any other method or media
will be in the amount of the then remaining Secured Party deems desirable. Disbursement may
unpaid balance. All amounts payable under this be made in Secured Party's name on Debtor's
Agreement are payable at Secured Party's address behalf or in Debtor's name. Disbursement in
shown below or at such other address as Secured accordance with the above instructions or any
Party may specify from time to time in writing. written supplement to those instructions will
Any note taken in conjunction with this Agreement constitute payment and delivery to and receipt by
evidences indebtedness and not payment. Debtor of all such proceeds.
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INSURANCE: Physical damage insurance covering the equipment is required. Debtor
can furnish this insurance through an agent or broker of Debtor's choice. Debtor
hereby authorizes Secured Party and any assignee to release to any insurance
company affiliated with Secured Party or any assignee any information relating
to a contract or policy of insurance which is providing or may provide insurance
coverage against physical damage to the Equipment.
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TOTAL AMOUNT: The Total Amount consists of $_______________ of principal and
precomputed interest in the amount of $__________ computed on the basis of
______% per annum on the assumption that all payments will be made on their
respective due dates.
DELINQUENCY: For each installment not paid when due, Debtor agrees to pay
Secured Party a delinquency charge calculated on the amount of such installment
at the rate of 1 1/2% per month for the period of the delinquency, or, at
Secured Party's option, 5% of such installment, provided that such a delinquency
charge is not prohibited by law, otherwise at the highest rate that Debtor can
legally obligate itself to pay and/or Secured Party can legally collect. Debtor
agrees to reimburse Secured Party immediately upon demand for any amount charged
to Secured Party by any depositary institution because a check, draft or other
order made or drawn by or for the benefit of Debtor is returned unpaid for any
reason. From and after acceleration, Debtor agrees to pay interest on all
amounts then owing at the rate of 1 1/2% per month, if not prohibited by law,
otherwise at the highest rate that Debtor can legally obligate itself to pay
and/or Secured Party can legally collect. If the implementation of any provision
of this Agreement would at any time raise the interest rate (whether before or
after accelerated delinquency charge above the lawful maximum, if any, in effect
from time to time under applicable state or federal laws for loans to borrowers,
for the purposes, and otherwise of the kind contemplated by this Agreement, then
such interest rate and/or delinquency charge will be the lawful maximum and any
excess amount inadvertently collected will be deemed to be a partial prepayment
of principal and applied or reapplied in that manner.
SECURITY INTEREST: To secure payment of the Total Amount and all of Debtor's
obligations under this Agreement or with respect to the Equipment Debtor hereby
grants to Secured Party a first priority security interest in the Equipment and
in all cash and non-cash proceeds thereof (the Equipment and any such proceeds
are herein called the "Collateral") regardless of any retaking and/or redelivery
of the Collateral to Debtor.
CROSS SECURITY: Debtor further grants to Secured Party a security interest in
the Collateral to secure the payment of all absolute and all contingent
obligations and liabilities of Debtor to Secured Party now existing or hereafter
arising, whether under this Agreement or under any other agreement and whether
due immediately or by assignment; provided, however, upon any assignment of this
Agreement by Secured Party, the assignee shall be deemed for the purpose of this
paragraph as the only party with a security interest in the Collateral.
DELIVERY AND ACCEPTANCE OF EQUIPMENT
(Check Appropriate Box)
Debtor's obligations and liabilities to Secured party are absolute and
unconditional under all circumstances and regardless of any failure of operation
or Debtor's loss of possession of any item of Equipment or the cessation or
interruption of Debtor's business for any reason whatsoever.
[ ] On _____________, the Equipment being purchased with the proceeds of this
Agreement was delivered to Debtor with all installation and other work
necessary for the proper use of the Equipment completed at a location
agreed upon by Debtor; the Equipment was inspected by Debtor and found to
be in satisfactory condition in all respects and delivery was
unconditionally accepted by Debtor.
[ ] The Equipment being purchased with the proceeds of this Agreement has not
yet been delivered to or accepted by Debtor and, upon delivery, Debtor
agrees to execute such delivery and acceptance certificate as Secured Party
requires.
[ ] All of the Equipment was acquired by Debtor prior to the date hereof and
was previously delivered to and unconditionally accepted by Debtor.
ADDITIONAL TERMS AND ORAL AGREEMENTS: Debtor and Secured Party agree that the
"Statement of Additional Terms" contained on the reverse side of this Agreement
constitutes a part of this Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
Debtor's Social Security or Federal Taxpayer Identification Number is: _________
and Co-Debor's is: ____________
DATED: Debtor hereby acknowledges receipt of an
exact copy of this Agreement.
SECURED PARTY DEBTOR
By Title By Title
----------------------- ------- ----------------------- -------
(If corporation, authorized party (If corporation, authorized party must
must sign and show corporate title. sign and show corporate title. If
If partnership, a general partner partnership, a general partner must
must sign. If owner or partner, show sign. If owner(s) or partner, show
which.) which.)
- ---------------------------------------- By Title
(Street Address) --------------------- --------
(If co-buyer or co-officer, sign
here and show which.)
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(City, State and Zip Code) (Street Address)
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(City, COUNTY, State and Zip Code)
826374 Rev. 9-94
Comm'l Direct Loan - Various States
(Precomputed-R.D.)
(O642D)