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88-10002~ I government or quasi-governmental agency or authority to operate or use and occupy the Premises. Unless contested in accordance with Section 1.4.5, Mortgagor shall comply promptly with all require- ments set forth in any of the Permits and all requirements of any law, ordinance, rule, regulation or requirement of any federal, state, municipal or local government or quasi-governmental agency or authority applicable to all or any part of the Mortgaged Property or the condition, use or occupancy of all or any part thereof or any restriction imposed upon the Mortgaged Property by any duly recorded deed of restriction, declaration, covenant running wi th the land or otherwi se, now or hereafter in force. 1.4.5 Subject to the provisions of the Underlying Lease, Mortgagor may at its own expense contest the amount or applicabili ty of any of the obligations described in Sections 1.4.1, 1.4.3 and 1.4.4 by appropriate legal proceedings, prosecu- tion of which operates to prevent the collection thereof or the sale or forfeiture or demolition of the Mortgaged Property or any part thereof to satisfy the same; provided, however, (i) Mortgagor has notified Beneficiary in writing of the intention of Mortgagor to contest the same before any such obligations have been in- creased by any interest, penalties, or costsi (ii) Mortgagor has obtained a title insurance endorsement over such contested obliga- tions insuring Beneficiary against loss or damage by reason of the existence of such contested obligations or Mortgagor has deposited wi th Beneficiary, at such place as Beneficiary may from time to time in writing designate, a sum of money or other security acceptable to Beneficiary that is sufficient in Beneficiary's judgment to pay in full such contested obligations (or to bring the Mortgaged Property in compliance with the obligations under Section 1.4.4) and all penal ties and interest that might become due thereon, and shall keep on deposit an amount sufficient, in Beneficiary's judgment, to pay in full such contested obligations, increasing such amount to cover additional penalties and interest whenever, in Beneficiary's judgment, such increase is advisable; (iii) Mortgagor shall not be exposed to any criminal or civil liability by virtue of such contest and such contest shall, in the judgment of the Beneficiary, be reasonab1ei (iv) Mortgagor shall diligently prosecute the contest of such contested obligations by appropriate legal proceedings and shall permit Beneficiary to be represented in any such contest and shall pay all expenses in- curred by Beneficiary in so doing, including fees and expenses of Beneficiary's counsel (all of which shall constitute so much additional Indebtedness bearing interest at the Default Rate until paid, and payable upon demand); and (v) in the event Mortgagor fails to prosecute such contest with reasonable diligence or fails to maintain sufficient funds on deposit as hereinabove provided, Beneficiary may, at its option, apply the monies and liquidate any securities deposited with Beneficiary, in payment of, or on account of, such contested obligations, or any portion thereof then unpaid, including all penalties and interest thereon. If the amount of the money and any such security so deposited is insuffi.. cient for the payment in full of such contested obligations, together with all penalties and interest thereon, Mortgagor shall -8- r-- L L -.J .,4 , r' h, L