NONJUDICIALLY, THE SECURED PARTY MAY RECORD IN THE OFFICE IN WHICH A
RECORD OF THE MORTGAGE IS RECORDED:

(1) A COPY OF THE SECURITY AGREEMENT THAT CREATES OR PROVIDES
FOR A SECURITY INTEREST IN THE OBLIGATION SECURED BY THE MORTGAGE; AND

(2) THE SECURED PARTY'S SWORN AFFIDAVIT IN RECORDABLE FORM
STATING THAT:

(A) A DEFAULT HAS OCCURRED; AND

(B) THE SECURED PARTY IS ENTITLED TO ENFORCE THE
MORTGAGE NONJUDICIALLY.

(C) A SECURED PARTY SHALL PROCEED IN A COMMERCIALLY REASONABLE
MANNER IF THE SECURED PARTY:

(1) UNDERTAKES TO COLLECT FROM OR ENFORCE AN OBLIGATION OF
AN ACCOUNT DEBTOR OR OTHER PERSON OBLIGATED ON COLLATERAL; AND

(2) IS ENTITLED TO CHARGE BACK UNCOLLECTED COLLATERAL OR
OTHERWISE TO FULL OR LIMITED RECOURSE AGAINST THE DEBTOR OR A
SECONDARY OBLIGOR

(D) A SECURED PARTY MAY DEDUCT FROM THE COLLECTIONS MADE
PURSUANT TO SUBSECTION (C) REASONABLE EXPENSES OF COLLECTION AND
ENFORCEMENT, INCLUDING REASONABLE ATTORNEYS FEES AND LEGAL EXPENSES
INCURRED BY THE SECURED PARTY.

(E) THIS SECTION DOES NOT DETERMINE WHETHER AN ACCOUNT DEBTOR,
BANK, OR OTHER PERSON OBLIGATED ON COLLATERAL OWES A DUTY TO A SECURED
PARTY.

9-608. APPLICATION OF PROCEEDS OF COLLECTION OR ENFORCEMENT; LIABILITY
FOR DEFICIENCY AND RIGHT TO SURPLUS.

(A) IF A SECURITY INTEREST OR AGRICULTURAL LIEN SECURES PAYMENT OR
PERFORMANCE OF AN OBLIGATION, THE FOLLOWING RULES APPLY:

(1) A SECURED PARTY SHALL APPLY OR PAY OVER FOR APPLICATION
THE CASH PROCEEDS OF COLLECTION OR ENFORCEMENT UNDER THIS SECTION IN
THE FOLLOWING ORDER TO:

(A) THE REASONABLE EXPENSES OF COLLECTION AND
ENFORCEMENT AND, TO THE EXTENT PROVIDED FOR BY AGREEMENT AND NOT
PROHIBITED BY LAW, REASONABLE ATTORNEYS FEES AND LEGAL EXPENSES
INCURRED BY THE SECURED PARTY;

(B) THE SATISFACTION OF OBLIGATIONS SECURED BY THE
SECURITY INTEREST OR AGRICULTURAL LIEN UNDER WHICH THE COLLECTION OR
ENFORCEMENT IS MADE; AND