Common use of Maintenance of Tangible Collateral Clause in Contracts

Maintenance of Tangible Collateral. Grantor will maintain the tangible Collateral in good condition and repair. At the time of attachment and perfection of the security interest granted pursuant hereto and thereafter, all tangible Collateral will be located and will be maintained only at locations where the Lender can perfect its security interest by the filing of a financing statement with the Minnesota Secretary of State. Except as otherwise permitted by Section 3.3 or by the proviso clause to this Section. Grantor will not remove such Collateral from such locations unless, prior to any such removal, Grantor has given written notice to Lender of the location or locations to which Grantor desires to remove the Collateral, Lender has given its written consent to such removal, and Grantor has delivered to Lender acknowledgment copies of financing statements (or comparable filings in Canada) filed where appropriate to continue the perfection of Lender’s security interest as a first priority security interest on such Collateral; provided, however, that Grantor may remove Equipment to foreign jurisdictions (other than Canada) so long as the aggregate fair market value of all Equipment located in such foreign jurisdictions does not exceed $250,000.00 for the Borrowers on a combined basis. Lender’s security interest attaches to all of the Collateral wherever located and Grantor’s failure to inform Lender of the location of any item or items of Collateral shall not impair Lender’s security interest thereon.

Maintenance of Tangible Collateral. Grantor will maintain the tangible Collateral in good condition and repair. At the time of attachment and perfection of the security interest granted pursuant hereto and thereafter, all tangible Collateral will be located and will be maintained only at locations where the Lender can perfect its security interest by the filing of a financing statement with the Minnesota Secretary of State. Except as otherwise permitted by Section 3.3 or by the proviso clause to this Section. Section , Grantor will not remove such Collateral from such locations unless, prior to any such removal, Grantor has given written notice to Lender of the location or locations to which Grantor desires to remove the Collateral, Lender has given its written consent to such removal, and Grantor has delivered to Lender acknowledgment copies of financing statements (or comparable filings in Canada) filed where appropriate to continue the perfection of Lender’s security interest as a first priority security interest on such Collateral; provided, however, that Grantor may remove Equipment to foreign jurisdictions (other than Canada) so long as the aggregate fair market value of all Equipment located in such foreign jurisdictions does not exceed $250,000.00 for the Borrowers on a combined basis. Lender’s security interest attaches to all of the Collateral wherever located and Grantor’s failure to inform Lender of the location of any item or items of Collateral shall not impair Lender’s security interest thereon.