200003557 - Laserfiche WebLink

Browse

200003557 receipts for the payment of Taxes and Other Charges prior to the date the same shall become delinquent and, promptly upon Lender's request, evidence satisfactory to Lender that Taxes, Other Charges and utility service charges have been so paid and are not then delinquent. Notwithstanding the foregoing, for so long as the lease dated , 1990 between Park Investments, Ltd. and K Mart Corporation (the "K Mart Lease ") is in effect, any obligations imposed on Borrower by this Section 3.5(a) to pay the Taxes or Other Charges with respect to that portion of the Property subject to the K Mart Lease shall be satisfied by the payment of such Taxes and Other Charges by the tenant under the K Mart Lease as provided in Article 5 of such K Mart Lease. Borrower shall deliver evidence of the payment of such Taxes and Other Charges by the tenant under the K Mart Lease within ten (10) days after the date that such Taxes and Other Charges become due. (b) After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any of the Taxes, provided that (i) no Event of Default has occurred and is continuing under the Note, this Security Instrument or any of the Other Loan Documents, (ii) such proceeding shall suspend the collection of the Taxes from Borrower and neither the Property nor any part thereof or interest therein will be in danger of being sold for unpaid Taxes, or Borrower shall have paid all of the Taxes under protest, (iii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute a default thereunder, (iv) Borrower shall have set aside adequate reserves for the payment of the Taxes, together with all interest and penalties thereon, unless Borrower has paid all of the Taxes under protest, and (v) Borrower shall have furnished the security as may be required in the proceeding, or as may be reasonably requested by Lender, to insure the payment of any contested Taxes, together with all interest and penalties thereon, taking into consideration the amount, if any, in the Escrow Fund (defined below in Section 3.5) available for payment of Taxes. Section 3.5 Escrow Fund. Unless waived in writing by Lender or applicable law provides otherwise, Lender may require Borrower to establish an Escrow Fund sufficient to discharge its obligations for the payment of Taxes and Insurance Premiums (defined in Section 3.6) pursuant to Sections 3.4 and 3.6 hereof. Borrower shall make initial deposits of Taxes and Insurance Premiums to Lender in amounts determined by Lender on the date hereof to be held by Lender in escrow. Additionally, Borrower shall pay to Lender on the first day of each calendar month (a) one - twelfth of an amount which would be sufficient to pay the Taxes payable, or estimated by Lender to be payable, upon the due dates established by the appropriate taxing authority during the next ensuing twelve (12) months and (b) one - twelfth of an amount which would be sufficient to pay the Insurance Premiums due for the renewal of the coverage afforded by the Policies (defined below) upon the expiration thereof (initial deposits together with the amounts in (a) and (b) above shall be called "Escrow Fund "). Borrower agrees to notify Lender immediately of any changes to the amounts, schedules and instructions for payment of any Taxes and Insurance Premiums of which it has obtained knowledge and authorizes Lender or its agent to obtain the bills for Taxes directly from the appropriate tax authority. The Escrow Fund and the payments of interest or principal or both, payable pursuant to the Note shall be added together and shall be paid as an aggregate sum by Borrower to Lender. Provided sufficient amounts exist in the Escrow Fund and no Event of Default exists, Lender shall pay the Taxes and Insurance Premiums as they become due on their respective due dates on behalf of Borrower by applying the Escrow Fund to the payments of such Taxes and Insurance Premiums. If the amount of the Escrow Fund exceeds the amounts due for Taxes and Insurance Premiums pursuant to Sections 3.4 and 3.6 hereof, Lender shall, in its discretion, return any excess to Borrower or credit such excess against future payments to be made to the Escrow Fund. In allocating such excess, Lender may deal with the person shown on the records of Lender to be the owner of the Property. If the Escrow Fund is not sufficient to pay amounts then due for Taxes and Insurance Premiums, Borrower shall promptly pay to Lender, upon demand, an amount which Lender reasonably estimates as sufficient to make up the deficiency. The Escrow Fund shall not constitute a trust fund and may be commingled with other monies held by Lender. Unless otherwise required by Applicable Laws (as defined in Section 3.12), no earnings or interest on the Escrow Fund shall be payable by Lender to Borrower. Anything in this Section 3.5 to the contrary ATLANTA4181845.4 GMACCM (SLIP) — DOT (8/98) 6 Grand Isle, Nebraska