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200507874
<br />or statement of fact made by or on behalf of Borrower in this Security Instrument or in any certificate, document or
<br />schedule furnished to Lender pursuant hereto, contains any untrue statement of a material fact or omits to state any
<br />material fact necessary to make statements contained therein or herein not misleading (which may be to Borrower's
<br />best knowledge where so provided herein). There are no facts presently known to Borrower which have not been
<br />disclosed to Lender which would, individually or in the aggregate, have a Material Adverse Effect nor as far as
<br />Borrower can foresee might, individually or in the aggregate, have a Material Adverse Effect.
<br />Section 2.06. Removal of Lien. (a) Borrower shall, at its expense, maintain this Security Instrument as a
<br />first lien on the Property and shall keep the Property free and clear of all liens and encumbrances of any kind and
<br />nature other than the Permitted Encumbrances. Borrower shall, within thirty (30) days of being served with notice
<br />thereof, promptly discharge of record, by bond or otherwise, any such liens and, promptly upon request by Lender,
<br />shall deliver to Lender evidence reasonably satisfactory to Lender of the discharge thereof.
<br />(b) Without limitation to the provisions of Section 2.06(a) hereof, Borrower shall (i) pay, from time to
<br />time when the same shall become due, all claims and demands of mechanics, materialmen, laborers, and others
<br />which, if unpaid, might result in, or permit the creation of, a lien on the Property or any part thereof, (ii) cause to be
<br />removed of record (by payment or posting of bond or settlement or otherwise) any mechanics', materialmens',
<br />laborers' or other lien on the Property, or any part thereof, or on the revenues, rents, issues, income or profit arising
<br />therefrom, and (iii) in general, do or cause to be done, without expense to Lender, everything reasonably necessary
<br />to preserve in full the lien of this Security Instrument. If Borrower fails to comply with the requirements of this
<br />Section 2.06(b), then, upon five (5) Business Days' prior notice to Borrower, Lender may, but shall not be obligated
<br />to, pay any such lien, and Borrower shall, within five (5) Business Days after Lender's demand therefor, reimburse
<br />Lender for all sums so expended, together with interest thereon at the Default Rate from the date advanced, all of
<br />which shall be deemed part of the Debt. Nothing contained herein shall be deemed a consent or request of Lender,
<br />express or implied, by inference or otherwise, to the performance of any alteration, repair or other work by any
<br />contractor, subcontractor or laborer or the famishing of any materials by any materialmen in connection therewith.
<br />(c) Notwithstanding the foregoing, Borrower may contest any lien (other than a lien relating to non-
<br />payment of Impositions, the contest of which shall be governed by Section 4.04 hereof) of the type set forth in
<br />subparagraph (b)(ii) of this Section 2.06 provided that, following prior notice to Lender (i) Borrower is contesting
<br />the validity of such lien with due diligence and in good faith and by appropriate proceedings, without cost or
<br />expense to Lender or any of its agents, employees, officers, or directors, (ii) Borrower shall preclude the collection
<br />of, or other realization upon, any contested amount from the Property or any revenues from or interest in the
<br />Property, (iii) neither the Property nor any part thereof nor interest therein, shall be in any danger of being sold,
<br />forfeited or lost by reason of such contest by Borrower, (iv) such contest by Borrower shall not affect the ownership,
<br />use or occupancy of the Property, (v) such contest by Borrower shall not subject Lender, Trustee or Borrower to the
<br />risk of civil or criminal liability (other than the civil liability of Borrower for the amount of the lien in question), (vi)
<br />such lien is subordinate to the lien of this Security Instrument, (vii) Borrower has not consented to such lien, (viii)
<br />Borrower has given Lender prompt notice of the filing of such lien and the bonding thereof by Borrower and, upon
<br />request by Lender from time to time, notice of the status of such contest by Borrower and/or confirmation of the
<br />continuing satisfaction of the conditions set forth in this Section 2.06(c), (ix) Borrower shall promptly pay the
<br />obligation secured by such lien upon a final determination of Borrower's liability therefor, and (x) in the event any
<br />such lien exceeds $25,000 or at any time after and during the occurrence of a Default, Borrower shall deliver to
<br />Lender cash, a bond or other security acceptable to Lender equal to 125% of the contested amount pursuant to
<br />collateral arrangements reasonably satisfactory to Lender.
<br />Section 2.07. Cost of Defending and 11pholding this Securi1y Instrument Lien. If any action or proceeding
<br />is commenced to which Lender or Trustee is made a party relating to the Loan Documents and/or the Property or
<br />Lender's or Trustee's interest therein or in which it becomes necessary to defend or uphold the lien of this Security
<br />Instrument or any other Loan Document, Borrower shall, on demand, reimburse Lender and/or Trustee, as
<br />applicable, for all expenses (including, without limitation, reasonable attorneys' fees and disbursements) incurred by
<br />Lender and/or Trustee, as applicable in connection therewith, and such sum, together with interest thereon at the
<br />Default Rate from and after such demand until fully paid, shall constitute a part of the Debt.
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