|
<br />200605846
<br />
<br />7. USE OF PROPERTY. Unless required by applicable law or unless Lender has
<br />otherwise agreed in writing, Borrower shall not allow changes in the use for which all or any part of the
<br />Real Property was intended at the time this Instrument was executed. Borrower shall not initiate or
<br />acquiesce in a change in the zoning classification of the Real Property without Lender's prior written
<br />consent. Borrower shall not violate nor shall Borrower permit or authorize the breach or violation of the
<br />terms of any easements, covenants orrestrictions of record upon or affecting the Real Property. Borrower
<br />will not conduct, permit or authorize the generation, storage, treatment or disposal of any friable asbestos,
<br />hazardous waste or toxic substance on or in a location that will adversely affect the Real Property and
<br />shall promptly provide Lender written notice of (a) its obtaining knowledge of any release of any
<br />hazardous or toxic material or oil at or from the Real Property or any other site owned, occupied or
<br />operated by Borrower or by any person for whose conduct Borrower is responsible or whose liability may
<br />result in a lien on the Real Property, (b) Borrower's receipt of any notice to such effect from any federal,
<br />state or other governmental authority and (c) loss by such governmental authority in connection with the
<br />assessment, containment or removal of any hazardous or toxic material or oil for which expense or loss
<br />Borrower may be liable or for which expense a lien may be imposed on the Real Property. "Borrower,"
<br />as that term is used herein, includes Borrower's successors, assigns, agents, servants, employees and
<br />owners.
<br />
<br />8. PROTECTION OF LENDER'S SECURITY. If Borrower fails to perform the
<br />covenants and agreements contained in this Instrument, the Revolving Loan Agreement or any of the
<br />other Loan Documents or if any action or proceeding is commenced which affects the Real Property or
<br />title thereto or the interest of Lender therein, including, but not limited to, eminent domain, insolvency,
<br />building code enforcement or arrangements or proceedings involving a bankruptcy or decedent, then
<br />Lender, at Lender's option, may make such appearances, disburse such sums and take such action as
<br />Lender deems necessary, in its sole discretion, to protect Lender's interest, including, but not limited to,
<br />(a) disbursement of attorneys' fees, (b) entry upon the Real Property to make repairs or otherwise to
<br />protect the same as security for the indebtedness secured by this Instrument, (c) procurement of
<br />satisfactory insurance as provided in this Instrument and (d) if this Instrument is on a leasehold, exercise
<br />of any option to renew or extend the ground lease on behalf of Borrower and the curing of any default of
<br />Borrower in the terms and conditions of the ground lease.
<br />
<br />Any amounts disbursed by Lender pursuant to this paragraph shall become additional
<br />indebtedness of Borrower secured by this Instrument. Unless Borrower and Lender agree to other terms
<br />of payment, such amounts shall be immediately due and payable and shall bear interest from the date of
<br />disbursement at the default rate as provided in the Revolving Loan Agreement, unless collection from
<br />Borrower of interest at such rate would be contrary to applicable law, in which event such amounts shall
<br />bear interest at the highest rate which may be collected from Borrower under applicable law. Borrower
<br />hereby covenants and agrees that Lender shall be subrogated to the lien of any mortgage or other lien
<br />discharged, in whole or in part, by any advances made by Lender hereunder. Nothing contained in this
<br />paragraph shall require Lender to incur any expense or take any action hereunder.
<br />
<br />9. INSPECTION. Lender may make or cause to be made reasonable entries upon and
<br />inspections of the Real Property at any time at Lender's option. Lender may at its option at any time,
<br />require Borrower, or Lender may arrange, all at the sole cost and expense of Borrower, to employ or for
<br />the employment of an independent and qualified environmental engineer and inspector, acceptable to
<br />Lender, to determine if there is any asbestos, petroleum, radon or hazardous material or substance above,
<br />in, on, under or from the Real Property. Such cost and expense shall, if not paid by Borrower, become
<br />additional indebtedness secured by this Instrument. The failure of Borrower to promptly pay the cost and
<br />expense of the same or to cooperate with and permit such inspection shall constitute a default under this
<br />Instrument.
<br />
<br />7
<br />
|