AGREEMENT TO PROVIDE INSURANCE
Exhibit
10.7
AGREEMENT
TO PROVIDE INSURANCE
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Borrower:
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ART’S-WAY MANUFACTURING COMPANY, INC.
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Lender:
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WEST
BANK
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(TIN: _________________)
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MAIN
BANK
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0000
XXXXXXX 0 XXXX, XXX 000
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0000
00XX XXXXXX
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XXXXXXXXX,
XX 00000
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XXXX
XXX XXXXXX, XX 00000
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(000)
000-0000
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ART’S-WAY SCIENTIFIC, INC. (TIN: _________________)
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000
XXX XX
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XXXXXX,
XX 00000
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INSURANCE
REQUIREMENTS. Grantor, ARTS-WAY SCIENTIFIC,
INC. (“Grantor”), understands that insurance coverage is required in
connection with the extending of a loan or the providing of other financial
accommodations to ARTS-WAY MANUFACTURING COMPANY, INC. (“Borrower) by
Lender. These requirements are set forth in the security documents
for the loan. The following minimum insurance coverages must be
provided on the following described collateral (the “Collateral”):
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Collateral:
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All
Inventory and Equipment.
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Type: All
risks, including fire, theft and liability.
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Amount: Loan
Amount,
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Basis: Replacement
value.
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Endorsements: Lender
loss payable clause with stipulation that coverage will not be cancelled
or diminished without a minimum of 30 days prior written notice to
Lender.
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Latest Delivery
Date: By the loan closing date.
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Collateral:
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000
XXX XXXXXX, XXXXXX, XX 00000.
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Type: Fire
and extended coverage.
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Amount: Loan
Amount.
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Basis: Replacement
value.
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Endorsements: Standard
mortgagee’s clause with stipulation that coverage will not be cancelled or
diminished without a minimum of 30 days prior written notice to Lender,
and without disclaimer of the insurer’s liability for failure to give such
notice.
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Latest Delivery
Date: By the loan closing
date.
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INSURANCE
COMPANY. Grantor may obtain insurance from any insurance
company Grantor may choose that is reasonably acceptable to
Lender. Grantor understands that credit may not be denied solely
because insurance was not purchased through Lender.
FLOOD
INSURANCE. Flood insurance for the Collateral securing this
loan is described as follows:
Real Estate at 000 XXX XXXXXX,
XXXXXX, XX 00000.
Should
the Collateral at any time be deemed to be located in an area designated by the
Director of the Federal Emergency Management Agency as a special flood hazard
area. Grantor agrees to obtain and maintain Federal Flood Insurance,
if available, for the full unpaid principal balance of the loan and any prior
liens on the property securing the loan, up to the maximum policy limits set
under the National Flood Insurance Program, or as otherwise required by Lender,
and to maintain such insurance for the term of the loan. Flood
insurance may be purchased under the National Flood Insurance Program or from
private insurers.
INSURANCE MAILING
ADDRESS. All documents and other materials relating to
insurance for this loan should be mailed, delivered or directed to the following
address:
WEST
BANK
X.X. XXX
00000
XXXX XXX
XXXXXX, XX 00000
FAILURE TO PROVIDE
INSURANCE. Grantor agrees to deliver to Lender, on the latest
delivery date stated above, proof of the required insurance as provided above,
with an effective date of June 8, 2009, or earlier. Grantor
acknowledges and agrees that if Grantor fails to provide any required insurance
or fails to continue such insurance in force, Lender may do so at Grantor’s
expense as provided in the applicable security document. The cost of
any such insurance, at the option of Lender, shall be added to the indebtedness
as provided in the security document. GRANTOR ACKNOWLEDGES THAT IF
LENDER SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED
PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO AN AMOUNT EQUAL TO
THE LESSER OF (1) THE UNPAID BALANCE OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE
CHARGES, OR (2) THE VALUE OF THE COLLATERAL; HOWEVER, GRANTOR’S EQUITY IN THE
COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT
PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET
THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS.
AUTHORIZATION. For
purposes of insurance coverage on the Collateral, Grantor authorizes Lender to
provide to any person (including any insurance agent or company) all information
Lender deems appropriate, whether regarding the Collateral, the loan or other
financial accommodations, or both.
GRANTOR
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS AGREEMENT TO PROVIDE INSURANCE
AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.
GRANTOR
ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE
INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JUNE 8,
2009.
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GRANTOR:
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ART’S-WAY
SCIENTIFIC, INC.
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By:
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/s/ Xxxxxx X. Xxxxxxx
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XXXXXX
X. XXXXXXX, PRESIDENT of ART’S-WAY
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SCIENTIFIC,
INC.
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FOR
LENDER USE ONLY
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DATE:
__________
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INSURANCE
VERIFICATION
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PHONE__________
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AGENT’S NAME:
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AGENCY:
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ADDRESS:
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INSURANCE COMPANY:
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POLICY NUMBER:
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EFFECTIVE DATES:
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COMMENTS:
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- 3
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AGREEMENT
TO PROVIDE INSURANCE
(Continued)
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FOR
LENDER USE ONLY
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DATE:
__________
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INSURANCE
VERIFICATION
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PHONE__________
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AGENT’S NAME:
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AGENCY:
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ADDRESS:
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INSURANCE COMPANY:
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POLICY NUMBER:
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EFFECTIVE DATES:
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COMMENTS:
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- 4
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