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4. Pyment of Taxes, etc.
<br />(a) All taxes, assessments, water rates and sewer rents, now or hereafter levied or assessed
<br />or imposed against the Mortgaged Property or any part thereof (the "Taxes ") and all
<br />ground rents, maintenance charges, other governmental impositions, and other charges,
<br />including without limitation vault charges and license fees for the use of vaults, chutes
<br />and similar areas adjoining the Premises, now or hereafter levied or assessed or
<br />imposed against the Mortgaged Property or any part thereof (the "Other Charges ") shall
<br />be paid by Borrower or Lessee on or prior to the date any interest or penalties are due
<br />thereon (except to the extent the Taxes or Other Charges are payable in installments, in
<br />which case Borrower or Lessee shall have the right to pay such Taxes or Other Charges
<br />in such installments). Borrower shall deliver, or cause to be delivered by Lessee, to
<br />Lender, promptly upon Lender's written request, evidence satisfactory to Lender that
<br />the Taxes and Other Charges have been so paid or are not then delinquent. Borrower
<br />shall not suffer and shall promptly cause to be paid and discharged any lien or charge
<br />whatsoever ( "Prohibited Encumbrances ") which may be or become a lien or charge
<br />against the Mortgaged Property, subject to paragraph 4(b) hereof, provided however,
<br />that the lien of ad valorem real estate taxes need not be discharged until the last day that
<br />the related taxes may be paid without incurring any interest or penalty. Borrower may,
<br />at its option and sole discretion, execute and deliver such powers of attorney and other
<br />documents granting the Lessee the rights to execute, acknowledge and deliver tax
<br />returns, statements and other tax related instruments, and pay any Taxes with respect to
<br />the Mortgaged Property or any income therefrom.
<br />(b) Notwithstanding the foregoing, but subject to the terms of the Lease (including the
<br />condition that no Lease Default then exists) after prior written notice to Lender,
<br />Borrower may, and after notice to Borrower and Lender, Lessee may, to the extent
<br />permitted under the Lease, at its own expense, contest, or permit to be contested, by
<br />appropriate legal proceeding, promptly initiated and conducted in good faith and with
<br />due diligence, the amount or validity or application in whole or in part of any of the
<br />Taxes, Other Charges or Prohibited Encumbrances, provided that (i) such proceeding
<br />shall suspend the collection of the Taxes, Other Charges or Prohibited Encumbrances
<br />from Borrower and from the Mortgaged Property, (ii) such proceeding shall be
<br />permitted under and be conducted in accordance with the provisions of any other
<br />instrument to which Borrower is subject and shall not constitute an Event of Default
<br />thereunder if contested by Borrower, or under the Lease if contested by Lessee, (iii)
<br />neither the Mortgaged Property nor any part thereof or interest therein will be in danger
<br />of being sold, forfeited, terminated, canceled or lost during the pendency of such
<br />contest, and (iv) if a Lease Default then exists or if the Lease is not in existence,
<br />Borrower or Lessee shall post a bond or other security with and acceptable to Lender in
<br />its discretion in an amount equal to 125% of the amount being contested.
<br />5. Escrow Fund.
<br />Borrower shall, during the existence of an Event of Default (unless the Lessee under the
<br />Lease is paying such sums directly to the taxing authority or insurer, as applicable), or during
<br />any period that the Lease is not in effect, at the option of Lender or its designee, pay to
<br />Lender on the first day of each calendar month one - twelfth of the amount reasonably
<br />estimated by Lender to be sufficient to enable Lender to pay, at least thirty (30) days before
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