Common use of Buyer’s Warranty Clause in Contracts

Buyer’s Warranty. Buyer Expressly Warrants And Covenants That: a. Buyer will use the Collateral for business purposes and will keep the Collateral in Albuquerque, New Mexico, except as provided for in paragraphs C and D below. b. Buyer will not permit any of the Collateral to be removed from the above mentioned location outside the ordinary course of business without the prior written consent of Seller. c. Buyer will immediately advise Seller in writing of any change in any of Buyer's places of business, or the opening of any new place of business. d. Buyer will at Buyer's own expense forthwith insure the Collateral in a reliable insurance company against loss or damage by fire and extended coverage for an amount equal to its approximate value, and keep the same so insured continuously until the full amount of said indebtedness is paid, with loss payable to Seller as Seller's interest may appear, and that Buyer will deliver said policies of insurance or copies of them or furnish proof of such insurance to Seller, and in case of loss, the Buyer shall have to right to apply the insurance proceeds to replace the Collateral which at all times will be large enough in value to fully and adequately secure the amount owed Seller. In the event the Buyer elects not to replace the Collateral, Seller shall retain from the insurance money an amount equal to the total balance of said indebtedness remaining unpaid, whether according to the tenor and effect of any promissory note or notes evidencing such indebtedness the same is due or not. Should the Buyer fail or refuse to forthwith effect such insurance and deliver the policies or furnish proof of such insurance as aforesaid, or fail to deep the Collateral so insured continuously until the full amount of said indebtedness is paid, Seller may at Seller's option effect such insurance and the amount so paid for such insurance with interest at the rate of ten percent (10%) per annum from the date of payment until repaid shall be added to said indebtedness, and the same shall be secured by the security agreement. e. Buyer will keep the Collateral in good condition and repair, reasonable wear and tear excepted, and will permit Seller and his/her agents to inspect the Collateral at any reasonable time.