collateral

Tweet

two years ago an auto repair business assets were purchased. a down payment was given and an agreement was drawn for the remaining balance. also pre-existing leins were taken over by the buyer. some of the equiptment had to be repaired to make it usable in the business. I am located in north carolina. as far as the collateral is concerned. am I required to keep every piece , keepng in mind that the inventory consists of items varing invalue from ten dollars to three thousand. at this time the balance on the note is about one tenth of the purchase price. the seller has made it known to me that I cannot sell, rent, or loan any of the collateral. I do not see in my contract any such info. But on another note there is a non-compete clause which states that he cannot be an owner or an emloyee of any other simular business within a 25 mile radius of city limits, which he has not complied to.now he wants to open a simular business and the price stated in the contract is five thousand but he says he has been understanding with me as I did not inform him of my business decisions and I purchased the assets not the corp. that was dissolved. I have been late on some of the monthly payments but I also paid the penalties incurred. can collateral that was part of a purchase be rented to a third party? also if a portion of the collateral became defective and had to be replaced for a simular piece of equiptment, does the new equiptment take the place of the old as collateral? what happens if the equiptment becomes out-dated and is no use to the business , can it be upgraded? or do i need to put it in storage to satisfy the note?