Reso 1998-012 - Laserfiche WebLink

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EXHIBIT C SECURITY AGREEMENT THIS SECURITY AGREEMENT, dated F br is 20 1998, is entered into by and between the CITY OF SAN LEANDRO, hereafter designated "the Secured Party," and Ronald Iohsnon, hereafter designated "the Debtor," as follows: FOR VALUE RECEIVED, the Debtor grants to the Secured Parry a security interest in the following described property, referred to in this SECURITY AGREEMENT as the collateral: All fixtures, equipment, and improvements owned or to be owned by the Debtor and located or to be located in Debtor's chief place of business located at 593 Dutton Avenue, San Leandro, California, to secure (1) the Debtor's PROMISSORY NOTE OF $22,000 to the Secured Party dated concurrently herewith, payable as to principal and interest as provided in the note; (2) all expenditures by the Secured Parry for taxes, insurance, and repairs to and maintenance of the Collateral incurred by the Secured Party in the collection and enforcement of the note and other indebtedness of the Debtor; and (3) all liabilities of the Debtor to the Secured Parry now existing or incurred in the future, matured or unmatured, direct or contingent, and any renewals, extensions, and substitutions of those liabilities. The Debtor warrants and covenants (1) that the Collateral currently owned by the Debtor is used and shall continue to be used in the Debtor's business, (2) that the Collateral to be owned by the Debtor is being acquired with the proceeds of the Loan from the Secured Party evidenced by the LOAN AGREEMENT and PROMISSORY NOTE dated concurrently herewith between the Debtor and the Secured Party, and (3) that the Collateral will be kept at Debtors chief place of business. The Debtor warrants, covenants, and agrees as follows: Title 1. Except for the security interest granted by this Agreement, the Debtor has, or on acquisition will have, full title to the Collateral free from any liens, security interests, encumbrances, or claims, and the Debtor will, at the Debtor's cost and expense, defend any action that may affect the Secured Party's security interest in, or the Debtor's title to, the Collateral. Financing Statement 2. The Debtor shall execute the Financing Statement attached hereto as Exhibit 1 and further shall execute any additional Financing Statement(s) deemed by the Secured Party to be necessary or useful to perfect the Secured Parry's security interest in the Collateral. No financing statement covering the Collateral or any part of it or any proceeds of it is on file in any public office, except the financing statement to be prepared pursuant to this SECURITY AGREEMENT. Sale, Lease, or Disposition of Collateral 3. The Debtor will not, without the written consent of the Secured Parry, sell, contract to sell, lease, encumber, or dispose of the Collateral or any interest in it.