|
200003557
<br />Article 8 - DEFAULT
<br />Section 8.1 Events of Default. The occurrence of any one or more of the following events shall,
<br />at Lender's option, constitute an "Event of Default" hereunder:
<br />(a) If an Event of Default as defined in the Note or any of the Other Loan Documents shall have
<br />occurred;
<br />(b) Except for the specific defaults set forth in this Section 8.1 or declared to be an immediate
<br />default under any Other Loan Documents and except for defaults regarding payments to be made under the
<br />Note (which failure is subject to any grace period set forth in the Note), any other default hereunder or under
<br />any of the Other Loan Documents occurs which is not cured (i) in the case of any default which can be cured
<br />by the payment of a sum of money, within five (5) days after written notice from Lender to Borrower, or (ii)
<br />in the case of any other default, within thirty (30) days after written notice from Lender to Borrower; provided
<br />that if such default cannot reasonably be cured within such thirty (30) day period and Borrower shall have
<br />commenced to cure such default within such thirty (30) day period and thereafter diligently and expeditiously
<br />proceeds to cure the same, such thirty (30) day period shall be extended for so long as it shall require
<br />Borrower in the exercise of due diligence to cure such default, it being agreed that no such extension shall
<br />be for a period in excess of one hundred twenty (120) days, unless, only in the case of cures that require
<br />construction or remedial work, such cure cannotwith diligence be completed within such one hundred twenty
<br />(120) day period, in which case such period shall be extended for an additional one hundred twenty (120)
<br />days;
<br />(c) If any representation or warranty of Borrower or any Guarantor or Indemnitor or any
<br />member, general partner, principal or beneficial owner in or of any of the foregoing, made herein or in the
<br />Environmental Indemnity Agreement or in any guaranty, or in any certificate, report, financial statement or
<br />other instrument or document furnished to Lender in connection herewith or in connection with any request
<br />for Lender's consent or approval, shall have been false or misleading in any material respect when made;
<br />(d) If Borrower or any Guarantor or Indemnitor shall make an assignment for the benefit of
<br />creditors or shall generally not be paying its debts as they become due;
<br />(e) If (i) Borrower or any Guarantor or Indemnitor shall commence any case, proceeding or
<br />other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to
<br />bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an order for
<br />relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
<br />arrangement, adjustment, winding -up, liquidation, dissolution, composition or other relief with respect to it
<br />or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official
<br />for it or for all or any substantial part of its assets, or the Borrower or any Guarantor or Indemnitor shall make
<br />a general assignment for the benefit of its creditors'; or (ii) there shall be commenced against Borrower or
<br />any Guarantor or Indemnitor any case, proceeding or other action of a nature referred to in clause (i) above
<br />which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) the
<br />Borrower or the Guarantor fails to use its best efforts to obtain a dismissal of such proceedings; or (iii) there
<br />shall be commenced against the Borrower or any Guarantor or Indemnitor any case, proceeding or other
<br />action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any
<br />substantial part of its assets which results in the entry of any order for any such relief and the Borrower or
<br />the Guarantor fails to use its best efforts to obtain a dismissal of such proceedings; or (iv) the Borrower or
<br />any Guarantor or Indemnitor shall take any action in furtherance of, or indicating its consent to, approval of,
<br />or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the Borrower or any
<br />Guarantor or Indemnitor shall generally not, or shall be unable to, or shall admit in writing its inability to, pay
<br />its debts as they become due;
<br />ATLANTA4181845.4
<br />GMACCM (SLP) — DOT (8/98) 24 Grand Isle, Nebraska
<br />
|