Common use of Optional Advances Clause in Contracts

Optional Advances. At its option, Secured Party may discharge taxes, liens, security interests or other encumbrances upon any of the Collateral, may place and pay premiums upon insurance on any of the Collateral and may incur expenses for maintenance and preservation of any of the Collateral. Debtor agrees to pay to Secured Party upon demand all sums incurred or paid for any of said purposes with interest from the date on which the same were incurred to the date of payment at the rate of 18 percent per annum. Payment thereof is secured by the Collateral.