|
~. __...-a~aosa
<br />~! S8CZZ02F &. Zn the event of the failure of the Mortgagor in any respect
<br />. to comply with the covenants and conditions herein contained with- respect- to-the
<br />procuring ist insurance, the payment of taxes, sesessments and other charges, the-
<br />- keeping of the Mortgaged Property in repair and'free of. liens.aad other claims
<br />or to comply with .any other coveaant contained in thin Mortgage,-any noteholde-i
<br />or noteholders-shall-have the right (without pre~udtce-to any other"rights:,
<br />arising by reason of such default} to advance or expend moneys for the purpose
<br />of procuring such insurance, ar for the payment of insurance premiums, taxes,
<br />assessments or other charges, or to save the Mortgaged Property from sale or
<br />forfei-cure foz any unpaid tax ar assessment, or otherwise, or to redeem the same
<br />from any tax or other sale, or to purchase any tax title thereon, or`to remove
<br />or purrlrase any mechanics' liens or other encumbrance thereon; or to bake rep cite
<br />thereon or to comply with any other covenant herein contained.: or to prosecute or
<br />defend any suit in relation to the Mortgaged Property or in-any manner to protect..
<br />the Mortgaged Fropertp and the title thereto, and all sums sn advanced for any
<br />of the aforesaid purposes with interest thereon at the highest legal.-rate. but not
<br />in excess of twelve per centum (I2X) per annum shall be deemed a cherge upon the
<br />Mortgaged Property in the. same manner as-the notes at the time outstanding are
<br />secured and shall be forthwith paid to the noteholder or noteholders making snch
<br />advance or advances upon demand. Zt shall not be obligatory for any notehelder
<br />in making any such advances or expenditures to inquire into the validity of any
<br />such.taY title, or of any of such taxes or assessments or sales therefor, or of
<br />any such mechanfcs' liens. or other encumbrance.
<br />SECTI(R~F 9. The Mortgagor will not, without the approval in writing
<br />of the majority REA noteholders and the majority Bank noteholders: (a} enter
<br />into any contract or contracts for the opera ion or maintenance of all or any
<br />part of its property, for the use by others of any of the Mortgaged Property,
<br />or for toll traffic, operator assistance, extended scope or svitching services
<br />to be furnished by or for connecting or other companies; provided, however,
<br />that such approval shall noc be required for any toll traffic or operator
<br />assistance contract which in form and substance conforms with contracts in
<br />general use in the telephone industry; or (b} deposit any of its fuads, regard-
<br />less of the source thereof, in any bank which is not insured by the Federal
<br />Deposit Insurance Corporation, or the successor thereof.
<br />SECTI~I 10. (a) If this subsection is made applicable by the
<br />Instruments Recital, the Mortgagor will not pay its directors or trustees, as
<br />such., any salaries for their services, except such as shall have been approved
<br />by the majority REa noteholders and the majority Bank noteholders, provided
<br />that aathing hezein contaiaed shall preclude any director or trustee from
<br />serving the Mortgagor in any other capacity and receiving compensation therefor.
<br />(b) Salaries, wages and other compensation paid by the
<br />Mortgagor for services, and directors' or trustees' fees, shall be reasonable
<br />and in conformity with the usual practice- of corporations of the size and nature
<br />of the Mortgagor. Except as specifically authorized in writing in advance by
<br />the majority REA noteholders and the majority Bank noteholders, the Mortgagor
<br />will make no advance payments or loans, or in any manner extend its credit,
<br />either directly or indirectly, with cr without interest, to any of its. di rectors,
<br />trustees, :,fficers, employees, stockholders, members or affiliated companies.
<br />1s used in this section, the term "affiliated companies" shall have the meaning
<br />prescribed-for this term by the Federal Communications Commission in its pre-
<br />vailing uniforms system of accounts for Class A telephone companies.
<br />SECTION 11. The Mortgagor will at all times keep, and safely preserve,
<br />proper Cooks, records- and accounts in which full and true entries will he made
<br />of ail of the. dealings business and affairs of the Mortgagor, in accordance
<br />- wi`t#s methods of accauating prescribed by the state regulatory body having
<br />jurisdiction aver the Mortgagor, or in the abseaca of such regulatory body or
<br />such prescription, by the Federal Com®unications Commission. The Mortgagor
<br />will prepare and furnish each noteholder not later than the [hirtiech day of
<br />T 10 _
<br />Form - trig: Coon REA - Tel. Sank Mtg.
<br />
|