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3ection 4,4 Security Interest Granted. To secure the
<br />pr:.)::i()t y,·1.11ent of the Uote .].nd the peC"formance by the Borrower
<br />..:,f lts .Jther ->'oLigations heC"eun<ler, the Borrower, t:' the full
<br />,~xt ~nt y?c;atte,l by law, hereby pledges to the Issuer and hereby
<br />gr3nts to the Issuer a purchase money Security Interest in and
<br />'1·.Jr•1es 1:1sl ,1c.•-.1ov.,ledges that the Issuer shall have and shall con-
<br />ti~u8 ~~ have a Security Interest in (1) the Equipment, (2) all
<br />~~C"s.;)n.:il ~C"operty or fixtures incorporated into the Project or
<br />.:i..::,1uirell ::rom the proceeds of the i3onds, (3) all rental payments
<br />or :Jt:1~r :Jay:nents or receipts of any :in<l pursuant to or i.n con-
<br />n~c~i ~n wit~ any lease of the Project, (4) all other property, to
<br />the .:i..:i;(i;;tu::i exi:.ent to which a security interest is permitted by
<br />l.:iJ, ~s~J in the conduct of all or any part of its business or
<br />busi~esses c8nducted on the Project (provided, that such other
<br />[lr"::>i>8Ct'( .:iay b,:i subject to a purchase money security intecest in
<br />f.:ivor of the Person providing the purchase money therefor, if,
<br />but JnlJ if, such other property does not constitute (a) property
<br />ac~uir2~ fr~m the proceeds of the aonds, (b) property necessary
<br />for':.~~ co~pletion of the Project, (c) C"eplacements or substitu-
<br />::.~s ::.::>r -,ny ~,roperty upon 1-:hich a security interest in favor of
<br />::.he !.;:.;uer !1as ,:1ttached pursuant to any provision heC"eof), ancl
<br />(3) in; ~fter ~cguired property or .:i.ny replacements, substitutes
<br />or 1dJL~ions to any of the foregoing property as well as any pro-
<br />Cctc'd.-; ::r·.);n the disposition thereof; provide,], that at any time
<br />whun t!H? ;1oi:-rowar is not in def.:i.ul t in the [_)er formance of any
<br />ter~, ~onJir.ion or covenant hereof, if the Borrower in its
<br />,JL;cr·:?ti·~n .Jecer:nines that any items of Project :nachincry or
<br />~qui;:i:ri!!nr. ha•,e \)ecome inaclequat::i, obsolete, worn out, unsuitable,
<br />un-lesir:ible or unnecessary, the 13orrower may remove ancl dispose
<br />·.::>f suc:1 itl!:ns of :nachinery or equipment from the Project and
<br />sell, ':.rode in, exchange or otherwise dispose of them (as a whole
<br />o~ in ?act) without any responsibility or accountability to the
<br />ls!iucr :,r thi:! Trustee therefor, ancl feet;! of t1,e security interest
<br />•Jr:rnt,!'1 i1erein, subject, however, to Section 7. 1 of this
<br />,\<Jr•:?em,~nt, dnd provi,1ed that the fJorrower sha 11 repair ;i.ny da;na-
<br />Jes to the i'r0ject occasioneu 'oy such cemoval, if the □orrower:
<br />(u) substitutes a.ncl installs anywhere in t:.he Project
<br />other ~achinery or equipment having equal or greater utility (but
<br />not 1wo.:ess,,ri ly having the sa,ne functi,:in or-value) in the 0pera-
<br />tion •Jf ::.ile ,1 roject as a fc1cility for its intendecl pllrpose
<br />(;Jr:,·Ji led :Jllt:h removal ,,nd substitution shall not impair operatinq
<br />unity), ~11 ~f ~hich substitute~ 1~chinery or equirment shall be
<br />free af Jll liens ancl encumbrances an~ shall become a part of the
<br />Project J.nd ::.hall be subject to the S•~curity interest <Jco.nte•l to
<br />the Issu•~r herein; or
<br />( i..>) [)J.y<, over to the Trust (!C for ,Iepos it by the Tr u:; tee
<br />t,:::i the :tedemption ,\ccount, (i) i.n the •~.:ise of the s.il~ of c1ny
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