BOWERS MUSEUM - 2006 GUARANTY AGMT FOR EXPANSION-2006

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for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Agency or of the whole or any substantial part ofits property. (d) if an Event of Default under subsection (a) has occurred and is continuing, the Bank may (1) declare the Obligation Amount, together with the accrued interest on any unpaid Obligation Amount, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything in this Guaranty Agreement to the contrary notwithstanding, and (2) exercise any other remedies available to the Bank in law or at equity. In the event that the full amount of the Pledged Tax Revenues is insufficient to pay the entire Obligation Amount when due as provided herein or for any other reason the Obligation Amount is not paid in full when due, any unpaid balance shall accrue interest compounded semi-annually at the rate of 12% per annum. There shall be no limitation on the amount of interest that may accrue on the Obligation Amount hereunder. (e) If an Event of Default under one or more of subsection (b) or (c) has occurred and is continuing, the Agency shall diligently work to remedy the Event of Default. If the Bank believes that the Agency is not working diligently to remedy the Event of Default, it shall be authorized to exercise any remedy available to the Bank in law or at equity except that it shall not be authorized to declare the Obligation Amount to be due and payable immediately so long as there is not a subsection (a) Event of Default. (f) Immediately upon becoming aware of the occurrence of an Event of Default, the Bank shall give notice of such Event of Default to the Agency by telephone, telecopier, facsimile or other telecommunication device, promptly confirmed in writing sent by U.S. mail. SECTION 6.02. Remedies. Upon the occurrence of an Event of Default, the Bank shall have the right: (a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the Agency or any member, officer or employee thereof, and to compel the Agency or any such member, officer or employee to perform and carry out its or his duties under law and the agreements and covenants required to be performed by it or him contained herein; (b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Bank; or (c) by suit in equity upon the happening of an Event of Default to require the Agency and its members, officers and employees to account as the trustee of an express trust. SECTION 6.03. Application of Funds upon Default. All amounts received by the Bank pursuant to any right given or action taken by the Bank under provisions of this Guaranty Agreement shall be applied by the Bank in the following order: First, to the payment of the costs and expenses of the Bank, including reasonable compensation to their agents, attorneys and counsel; and Second, to the payment of the whole amount of the obligation Amount and interest thereon then due and unpaid; provided, however, that in the event such amounts shall be 8