Common use of Enforceability of Collateral Clause in Contracts

Enforceability of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, the Collateral is enforceable in accordance with its terms, is genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any account becomes subject to a security interest in favor of Lender, the account shall be a good and valid account representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or theretofore shipped or delivered pursuant to a contract of sale, or 07-24-1995 COMMERCIAL SECURITY AGREEMENT Page 4 (Continued) for services theretofore performed by Grantor with or for the account debtor; there shall be no setoffs or counterclaims against any such account; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender in writing. LOCATION OF THE COLLATERAL. Grantor, upon request of Lender, will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (a) all real property owned or being purchased by Grantor; (b) all real property being rented or leased by Grantor; (c) all storage facilities owned, rented, leased, or being used by Grantor; and (d) all other properties where Collateral is or may be located. Except in the ordinary course of its business, Grantor shall not remove the Collateral from its existing locations without the prior written consent of Lender.

Enforceability of Collateral. To the extent went the Collateral consists of accounts, chattel paper, or general intangibles, as defined by tile Uniform Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and complies fully compiles with all applicable laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on an the Collateral. At the tile time any account becomes subject to a security interest in favor of LenderXxxxxx, the tile account shall be a good and valid account representing an undisputed, bona fide indebtedness Indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or theretofore previously shipped or delivered pursuant to a contract of sale, or 07-24-1995 COMMERCIAL SECURITY AGREEMENT Page 4 (Continued) for services theretofore previously performed by Grantor with or for the account debtor; there . So long as this Agreement remains in effect, Grantor shall not, without Xxxxxx's prior written consent, compromise, settle, adjust, or extend payment under or with regard to any such Accounts. There shall be no setoffs or counterclaims against any such account; of the Collateral, and no agreement Shall have been made under which any deductions or discounts may be claimed shall have been made with concerning the account debtor Collateral except those disclosed to Lender in writing. LOCATION OF THE COLLATERALLocation of tile Collateral. Except in the ordinary course of Xxxxxxx's business, Xxxxxxx agrees to keep tile Collateral (or to the extent tile Collateral consists of intangible property such as accounts or general Intangibles, the records concerning the Collateral) at Grantor's address shown above or at such other locations as are acceptable to Lender. Upon Lender's request, upon request of Lender, Grantor will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (a1) all real property owned Grantor owns or being purchased by Grantoris purchasing; (b2) all real property being rented Grantor is renting or leased by Grantorleasing; (c3) all storage facilities ownedGrantor owns, rentedrents, leasedlosses, or being used by Grantoruses; and (d4) all other properties where Collateral is or may be located, Removal of the Collateral. Except in the ordinary course of its Xxxxxxx's business, including the sales of inventory, Grantor shall not remove the Collateral from its existing locations location without the Lender's prior written consent consent. To the extent that the Collateral consists of Lendervehicles, or other titled property, Grantor shall not take or permit any action which would require application for certificates of title for the vehicles outside the State of Oregon, without Xxxxxx's prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the Collateral.

Enforceability of Collateral. To The Collateral that comprises Eligible Paper under the extent the Collateral consists of accounts, chattel paper, or general intangibles, the Collateral Loan Agreement is enforceable in accordance with its terms, is genuine, and complies with applicable state and federal laws and regulations concerning form, content and manner of preparation and execution, and, to the best of Grantor's knowledge, all persons appearing to be obligated on the Eligible Paper have authority and capacity to contract and are in fact obligated as they appear to be on the Eligible Paper, free of any offset, compensation, deduction or counterclaim. To the extent the Collateral consists of accounts, chattel paper, instruments, or general intangibles that are not Eligible Paper under the Loan Agreement, such ineligible Collateral is enforceable in accordance with its terms, is genuine, and complies in all material respects with applicable state and federal laws and regulations concerning form, content and manner of preparation and execution, and, to the best of Grantor's knowledge, all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral, free of any offset, compensation, deduction or counterclaim. At the time any account account, chattel paper, instrument or general intangible becomes subject to a security interest in favor of Lender, the account account, chattel paper, instrument or general intangible shall be a good and valid account account, chattel paper, instrument or general intangible representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or theretofore shipped or delivered pursuant to a contract of sale, or 07-24-1995 COMMERCIAL SECURITY AGREEMENT Page 4 (Continued) for services theretofore performed by Grantor with or for the account debtor; there shall be no setoffs or counterclaims against any such account, chattel paper, instrument or general intangible; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender in writing. LOCATION OF THE COLLATERAL. GrantorSo long as this Agreement remains in effect, upon request of Grantor shall not, without Lender's prior written consent, will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operationscompromise, including without limitation the following: (a) all real property owned or being purchased by Grantor; (b) all real property being rented or leased by Grantor; (c) all storage facilities ownedsettle, rented, leasedadjust, or being used by Grantor; and (d) all other properties where Collateral is extend payment under or may be located. Except with regard to any such accounts, chattel paper, instruments or general intangibles, except in the ordinary course of its Grantor's business, Grantor shall not remove the Collateral from its existing locations without the prior written consent of Lender.

Enforceability of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform Commercial Code, the Collateral is enforceable in accordance with its Its terms, is Is genuine, and fully complies with all applicable laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in In fact obligated as they appear to be on the Collateral. At the time any account becomes subject to a security interest in favor of LenderXxxxxx, the account shall be a good and valid account representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or theretofore previously shipped or delivered pursuant to a contract of sale, or 07-24-1995 COMMERCIAL SECURITY AGREEMENT Page 4 (Continued) for services theretofore previously performed by Grantor with or for the account debtor; there . So long as this Agreement remains in effect Grantor shall not, without Xxxxxx's prior written consent, compromise, settle, adjust, or extend payment under or with regard to any such Accounts. There shall be no setoffs or counterclaims against any such account; of the Collateral, and no agreement shall have been made under which any deductions or discounts may be he claimed shall have been made with concerning the account debtor Collateral except those disclosed to Lender in writing. LOCATION OF THE COLLATERALLocation of the Collateral. Except in the ordinary course of Xxxxxxx's business, Xxxxxxx agrees to keep the Collateral for to the extent the Collateral consists of Intangible property such as accounts or general Intangibles, the records concerning the Collateral) at Grantor's address shown above or at such other locations as are acceptable to Lender. Upon Xxxxxx's request, upon request of Lender, Grantor will deliver to Lender in In form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including Including without limitation the following: (a1) all real property owned Grantor owns or being purchased by GrantorIs purchasing; (b2) all real property being rented Grantor Is renting or leased by Grantorleasing; (c3) all storage facilities ownedGrantor owns, rentedrents, leasedleases, or being used by Grantoruses; and (d4) all other properties where Collateral is Is or may be he located. Removal of the Collateral, Except in the ordinary course of its Grantor's business, including the sales of Inventory, Grantor shall not remove the Collateral from its existing locations location without the Lender's prior written consent consent. To the extent that the Collateral consists of Lendervehicles, or other titled property, Grantor shall not take or permit any action which would require application fur certificates of title for the vehicles outside the State of Oregon, without Xxxxxx's prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the Collateral.

Enforceability of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, the Collateral is enforceable in accordance with its terms, is genuine, and complies with applicable laws concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any account becomes subject to a security interest in favor of LenderLendxx, the xxe account shall be a good and valid account representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or theretofore shipped or delivered pursuant to a contract of sale, or 07-24-1995 COMMERCIAL SECURITY AGREEMENT Page 4 (Continued) for services theretofore performed by Grantor with or for the account debtor; there Grantor will not adjust, settle, compromise, amend or modify any account, except in good faith and in the ordinary course of business; provided, however, this exception shall be no setoffs automatically terminate upon the occurrence of an Event of Default or counterclaims against any such account; and no agreement under which any deductions or discounts may be claimed shall have been made with the account debtor except those disclosed to Lender in writingupon Lendxx'x xritten request. LOCATION OF THE COLLATERAL. Grantor, upon request of Lender, will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation the following: (a) all real property owned or being purchased by Grantor; (b) all real property being rented or leased by Grantor; (c) all storage facilities owned, rented, leased, or being used by Grantor; and (d) all other properties where Collateral is or may be located. Except in the ordinary course of its business, Grantor shall not remove the Collateral from for its existing locations without the prior written consent of Lender.