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heretofore advanced by the Bank to the Debtor on the Indebtedness,and similarly for any future disbursements made by the City thereon. 6. The Bank shall administer,manage and service the Indebtedness under the Loan Documents. The Bank shall,with the prior notice to the City,exercise collection rights with respect to any collateral;foreclose against any collateral of accept a transfer in lieu of foreclosure;collect and receive any and all payments,collections and proceeds of collateral made or delivered by or for the account of the Debtor-, release such payments,collections and proceeds to the Debtor or apply the same to the payment of the Indebtedness;and enforce rights against third parties. In carrying out its obligations,the Baan shall act in honesty and in good faith. Neither the Bank nor any of its directors,officers,employees or agents shall be liable for any action taken or omitted by the Bank or any of them except in the case of failure to perform its obligations under this Agreement or willful misconduct. 7. All payments received by the Bank after the occurrence of any Event of Termination (whether such payrnents are from the Debtor or out of any collateral or from any other person or out of any other property)shall be applied: first to pay or reimburse the Bank for expenses incurred;second to the Banks principal portion and interest} and,third the City shall be paid its principal talus interest. Any excess shall be split in accordance with the proportion of participation.The City is not responsible to gay the Bank for any collection efforts that the Bank takes. 8. This Agreement shall be governed by the laws of the State of Minnesota and shall be finding upon and inure to the benefit of the parties and their respective successors and assigns.This Agreement may be executed in counterparts,each of which shall constitute an original hereof and all of which shall constitute one and the same 3