TAXES AND OTHER CHARGES.
(A)
BORROWER SHALL PAY ALL TAXES AND OTHER CHARGES NOW OR HEREAFTER
LEVIED OR ASSESSED OR IMPOSED AGAINST THE PROPERTY OR ANY PART THEREOF AS THE
SAME BECOME DUE AND PAYABLE; PROVIDED, THAT BORROWER'S OBLIGATION TO DIRECTLY
PAY TAXES SHALL BE SUSPENDED FOR SO LONG AS BORROWER COMPLIES WITH THE TERMS AND
PROVISIONS OF SECTION 7.2.
BORROWER WILL DELIVER TO LENDER RECEIPTS FOR PAYMENT
OR OTHER EVIDENCE SATISFACTORY TO LENDER THAT THE TAXES AND OTHER CHARGES HAVE
BEEN SO PAID OR ARE NOT THEN DELINQUENT NO LATER THAN TEN (10) DAYS PRIOR TO THE
DATE ON WHICH THE TAXES AND/OR OTHER CHARGES WOULD OTHERWISE BE DELINQUENT IF
NOT PAID; PROVIDED, THAT BORROWER IS NOT REQUIRED TO FURNISH SUCH RECEIPTS FOR
PAYMENT OF TAXES IN THE EVENT THAT SUCH TAXES HAVE BEEN PAID BY LENDER PURSUANT
TO SECTION 7.2.
BORROWER SHALL NOT SUFFER AND SHALL PROMPTLY CAUSE TO BE PAID
AND DISCHARGED (OR SHALL BOND CONTEST IN ACCORDANCE WITH THE TERMS HEREOF) ANY
LIEN OR CHARGE WHATSOEVER WHICH MAY BE OR BECOME A LIEN OR CHARGE AGAINST THE
PROPERTY, AND SHALL PROMPTLY PAY FOR ALL UTILITY SERVICES PROVIDED TO THE
PROPERTY.
(B)
AFTER PRIOR NOTICE TO LENDER, BORROWER, AT ITS OWN EXPENSE, MAY
CONTEST BY APPROPRIATE LEGAL PROCEEDING, PROMPTLY INITIATED AND CONDUCTED IN
GOOD FAITH AND WITH DUE DILIGENCE, THE AMOUNT OR VALIDITY OR APPLICATION IN
WHOLE OR IN PART OF ANY TAXES OR OTHER CHARGES, PROVIDED THAT (A) NO DEFAULT OR
EVENT OF DEFAULT HAS OCCURRED AND REMAINS UNCURED; (B) BORROWER IS PERMITTED TO
DO SO UNDER THE PROVISIONS OF ANY MORTGAGE OR DEED OF TRUST SUPERIOR IN LIEN TO
THE SECURITY INSTRUMENT; (C) SUCH PROCEEDING SHALL BE PERMITTED UNDER AND BE
CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF ANY OTHER INSTRUMENT TO WHICH
BORROWER IS SUBJECT AND SHALL NOT CONSTITUTE A DEFAULT THEREUNDER AND SUCH
PROCEEDING SHALL BE CONDUCTED IN ACCORDANCE WITH ALL APPLICABLE STATUTES, LAWS
AND ORDINANCES; (D) NEITHER THE PROPERTY NOR ANY PART THEREOF OR INTEREST
THEREIN WILL BE IN DANGER OF BEING SOLD, FORFEITED, TERMINATED, CANCELLED OR
LOST; (E) BORROWER SHALL PROMPTLY UPON FINAL DETERMINATION THEREOF PAY THE
AMOUNT OF ANY SUCH TAXES OR OTHER CHARGES, TOGETHER WITH ALL COSTS, INTEREST AND
PENALTIES WHICH MAY BE PAYABLE IN CONNECTION THEREWITH; (F) SUCH PROCEEDING
SHALL SUSPEND THE COLLECTION OF SUCH CONTESTED TAXES OR OTHER CHARGES FROM THE
PROPERTY; AND (G) BORROWER SHALL FURNISH SUCH SECURITY AS MAY BE REQUIRED IN THE
PROCEEDING, OR AS MAY BE REASONABLY REQUESTED BY LENDER, TO INSURE THE PAYMENT
OF ANY SUCH TAXES OR OTHER CHARGES, TOGETHER WITH ALL INTEREST AND PENALTIES
THEREON.
LENDER MAY PAY OVER ANY SUCH CASH DEPOSIT OR PART THEREOF HELD BY
LENDER TO THE CLAIMANT ENTITLED THERETO AT ANY TIME WHEN, IN THE JUDGMENT OF
LENDER, THE ENTITLEMENT OF SUCH CLAIMANT IS ESTABLISHED OR THE PROPERTY (OR PART
THEREOF OR INTEREST THEREIN) SHALL BE IN DANGER OF BEING SOLD, FORFEITED,
TERMINATED, CANCELLED OR LOST OR THERE SHALL BE ANY DANGER OF THE LIEN