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<br />(k) (i) None of the funds or other assets of Borrower or Guarantor constitute
<br />.property of, or are beneficially owned, directly or indirectly, by any person, entity
<br />or government subject to trade restrictions under federal law, including, without
<br />limitation, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701
<br />et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq. ,and any
<br />executive orders or regulations promulgated thereunder, with the result that (A)
<br />the investment in Borrower or Guarantor, as applicable (whether directly or
<br />indirectly), is prohibited by law, or (B) the Loan is in violation of law
<br />("Embargoed Person").
<br />(ii) No Embargoed Person has any interest of any nature whatsoever in
<br />Borrower or Guarantor, as applicable (whether directly or indirectly), with
<br />the result that (A) the investment in Borrower or Guarantor, as applicable
<br />(whether directly or indirectly) is prohibited by law, or (B) the loan
<br />represented by the Note is in violation of law; and none of the funds of
<br />Borrower or Guarantor, as applicable, have been derived from any
<br />unlawful activity with the result that (y) the investment in Barrower or
<br />Guarantor, as applicable (whether directly or indirectly) is prohibited by
<br />law, or (z) the loan represented by the Note is in violation of law.
<br />3. Insurance.
<br />(a) During the time that the Lease is in effect, Borrower shall cause the Mortgaged
<br />Property at all times during the entire term of this Security Instrument to be
<br />insured by either Borrower or Lessee for the mutual benefit of Borrower and
<br />Lender against loss or damage by fire and against loss or damage to the
<br />Improvements and Equipment by other risks and hazards covered by a standard
<br />"special farm coverage" (sometimes referred to as "special extended coverage")
<br />insurance policy, as specified in the Lease, together with such other insurance as
<br />is required to be maintained by Lessee under the Lease; rop vided, that Lessee may
<br />self-insure as and to the extent permitted under the Lease. In the event that the
<br />Lease is no longer in effect, the amount of such insurance shall be not less than
<br />one hundred percent (100%) of the full replacement cost of the Improvements,
<br />furniture, furnishings, fixtures, equipment and other items (whether personalty or
<br />fixtures) included in the Mortgaged Property and owned by Borrower from time
<br />to time, without reduction for depreciation, but excluding footings and
<br />foundations and parts of the Mortgaged Property to the extent not insurable. The
<br />determination of the replacement cost amount shall be adjusted annually to
<br />comply with the requirements of the insurer issuing such coverage or, at Lender's
<br />election, by reference to such indices, appraisals or information as Lender
<br />determines in its reasonable discretion. Full replacement cost, as used herein,
<br />means, with respect to the Improvements, the cost of replacing the Improvements
<br />without regard to deduction for depreciation, exclusive of the cost of excavations,
<br />foundations and footings below the lowest basement floor, and means, with
<br />respect to such furniture, furnishings, fixtures, equipment and other items which
<br />are part of the Mortgaged Property, the cost of replacing the same, in each case,
<br />with inflation guard coverage to reflect the effect of inflation. Each such policy
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