DEFEND, OR BRING ANY ACTION OR PROCEEDING TO
PROTECT ITS INTEREST IN THE PROPERTY OR TO FORECLOSE THIS MORTGAGE OR COLLECT
THE DEBT, AND THE COST AND EXPENSE THEREOF (INCLUDING REASONABLE ATTORNEYS' FEES
TO THE EXTENT PERMITTED BY LAW), WITH INTEREST AS PROVIDED IN THIS SECTION 7.3,
SHALL CONSTITUTE A PORTION OF THE DEBT AND SHALL BE DUE AND PAYABLE TO LENDER
UPON DEMAND.
ALL SUCH COSTS AND EXPENSES INCURRED BY LENDER IN REMEDYING SUCH
EVENT OF DEFAULT OR SUCH FAILED PAYMENT OR ACT OR IN APPEARING IN, DEFENDING, OR
BRINGING ANY SUCH ACTION OR PROCEEDING SHALL BEAR INTEREST AT THE DEFAULT RATE,
FOR THE PERIOD AFTER NOTICE FROM LENDER THAT SUCH COST OR EXPENSE WAS INCURRED
TO THE DATE OF PAYMENT TO LENDER.
ALL SUCH COSTS AND EXPENSES INCURRED BY
LENDER TOGETHER WITH INTEREST THEREON CALCULATED AT THE DEFAULT RATE SHALL BE
DEEMED TO CONSTITUTE A PORTION OF THE DEBT AND BE SECURED BY THIS MORTGAGE AND
THE OTHER LOAN DOCUMENTS AND SHALL BE IMMEDIATELY DUE AND PAYABLE UPON DEMAND BY
LENDER THEREFOR.
7.4
ACTIONS AND PROCEEDINGS.
LENDER HAS THE
RIGHT TO APPEAR IN AND DEFEND ANY ACTION OR PROCEEDING BROUGHT WITH RESPECT TO
THE PROPERTY AND TO BRING ANY ACTION OR PROCEEDING, IN THE NAME AND ON BEHALF OF
BORROWER, WHICH LENDER, IN ITS DISCRETION, DECIDES SHOULD BE BROUGHT TO PROTECT
ITS INTEREST IN THE PROPERTY.
7.5
RECOVERY OF SUMS REQUIRED TO BE PAID.
LENDER SHALL HAVE THE RIGHT FROM TIME TO TIME TO TAKE ACTION TO RECOVER ANY SUM
OR SUMS WHICH CONSTITUTE A PART OF THE DEBT AS THE SAME BECOME DUE, WITHOUT
REGARD TO WHETHER OR NOT THE BALANCE OF THE DEBT SHALL BE DUE, AND WITHOUT
PREJUDICE TO THE RIGHT OF LENDER THEREAFTER TO BRING AN ACTION OF FORECLOSURE,
OR ANY OTHER ACTION, FOR A DEFAULT OR DEFAULTS BY BORROWER EXISTING AT THE TIME
SUCH EARLIER ACTION WAS COMMENCED.
17
7.6
EXAMINATION OF BOOKS AND RECORDS.
AT
REASONABLE TIMES AND UPON REASONABLE NOTICE, LENDER, ITS AGENTS, ACCOUNTANTS AND
ATTORNEYS SHALL HAVE THE RIGHT TO EXAMINE THE RECORDS, BOOKS, MANAGEMENT AND
OTHER PAPERS OF BORROWER WHICH REFLECT UPON THEIR FINANCIAL CONDITION, AT THE
PROPERTY OR AT ANY OFFICE REGULARLY MAINTAINED BY BORROWER WHERE THE BOOKS AND
RECORDS ARE LOCATED.
LENDER AND ITS AGENTS SHALL HAVE THE RIGHT TO MAKE COPIES
AND EXTRACTS FROM THE FOREGOING RECORDS AND OTHER PAPERS.
IN ADDITION, AT
REASONABLE TIMES AND UPON REASONABLE NOTICE, LENDER, ITS AGENTS, ACCOUNTANTS AND
ATTORNEYS SHALL HAVE THE RIGHT TO EXAMINE AND AUDIT THE BOOKS AND RECORDS OF
BORROWER PERTAINING TO THE INCOME, EXPENSES AND OPERATION OF THE PROPERTY DURING
REASONABLE BUSINESS HOURS AT ANY OFFICE OF BORROWER WHERE THE BOOKS AND RECORDS
ARE LOCATED.
THIS SECTION 7.6 SHALL APPLY THROUGHOUT THE TERM OF THE NOTE AND
WITHOUT REGARD TO WHETHER AN EVENT OF DEFAULT HAS OCCURRED OR IS CONTINUING.
UNLESS AN EVENT OF DEFAULT SHALL BE CONTINUING, IN WHICH EVENT THE ACTION
CONTEMPLATED BY THIS SECTION 7.6 SHALL BE AT BORROWER'S SOLE COST AND