Common use of Title; Security Interest Clause in Contracts

Title; Security Interest. Title to each Accepted Bus shall and does vest immediately in the LEA upon acceptance of the Bus by the DPI and the delivery of an Acceptance Certificate to CONTRACTOR by the DPI; provided, however, in the event of termination of this Agreement pursuant to Section 8.02 (a) and Section 8.02(b) hereof, title to the Accepted Buses will immediately vest in CONTRACTOR. Upon any vesting of title to the Accepted Buses in CONTRACTOR pursuant to the preceding sentence, the LEA shall deliver the Accepted Buses to CONTRACTOR promptly without fraud or delay and in good order, condition and repair, except for reasonable wear and tear, free and clear of all lettings, liens and encumbrances created or suffered by the LEA, and without any payment or allowance whatever by CONTRACTOR on account of any improvements made by the LEA, to a mutually-agreed upon location in the State of North Carolina. CONTRACTOR will have all legal and equitable rights and remedies to take possession of the Accepted Buses. In order to further secure its obligations hereunder, the LEA hereby (i) grants to CONTRACTOR a first and prior security interest in any and all right, title, and interest of the LEA in the Accepted Buses and on any proceeds therefrom; (ii) agrees that this Agreement may be filed as a financing statement evidencing such security interest; and (iii) agrees to execute and deliver all financing statements, certificates of title and other instruments necessary or appropriate to evidence such security interest.

Title; Security Interest. Title to each Accepted Bus shall and does vest immediately in the LEA upon acceptance of the Bus by the DPI and the LEA and the delivery of an Acceptance Certificate to CONTRACTOR by the DPI; provided, however, in the event of termination of this Agreement pursuant to Section 8.02 (a) and Section 8.02(b) hereof, title to the Accepted Buses will immediately vest in CONTRACTOR. Upon any vesting of title to the Accepted Buses in CONTRACTOR pursuant to the preceding sentence, the LEA shall deliver the Accepted Buses to CONTRACTOR promptly without fraud or delay and in good order, condition and repair, except for reasonable wear and tear, free and clear of all lettings, liens and encumbrances created or suffered by the LEA, and without any payment or allowance whatever by CONTRACTOR on account of any improvements made by the LEA, to a mutually-agreed upon location in the State of North Carolina. CONTRACTOR will have all legal and equitable rights and remedies to take possession of the Accepted Buses. In order to further secure its obligations hereunder, the LEA hereby (i) grants to CONTRACTOR a first and prior security interest in any and all right, title, and interest of the LEA in the Accepted Buses and on any proceeds therefrom; (ii) agrees that this Agreement may be filed as a financing statement evidencing such security interest; and (iii) agrees to execute and deliver all financing statements, certificates of title and other instruments necessary or appropriate to evidence such security interest.