Common use of Secured Parties May Perform Clause in Contracts

Secured Parties May Perform. Upon the occurrence and continuation of an “Event of Default” under any Note, at the option of the Secured Parties and subject to any limitations in the Subordination Agreement, the Secured Parties may discharge taxes, liens or security interests, or other encumbrances at any time hereafter levied or placed on the Collateral except to the extent same are Permitted Liens; may pay for insurance required to be maintained on the Collateral pursuant to Section 3; and may pay for the maintenance and preservation of the Collateral. The Debtor agrees to reimburse the Secured Parties on demand for any payment made, or any expense incurred, by the Secured Parties pursuant to the foregoing authorization. Until the occurrence and continuation of an Event of Default, subject to any restrictions and/or limitations set forth in the Subordination Agreement, the Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this Security Agreement.