ADDITIONAL SECURITY FOR THE DEBT.
7.7.2
UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, LENDER
MAY, IN ADDITION TO ANY AND ALL OTHER RIGHTS AND REMEDIES AVAILABLE TO LENDER,
APPLY ANY SUMS THEN PRESENT IN ANY OR ALL OF THE RESERVE FUNDS TO THE PAYMENT OF
THE DEBT IN ANY ORDER IN ITS SOLE DISCRETION.
7.7.3
THE RESERVE FUNDS SHALL NOT CONSTITUTE TRUST FUNDS
AND MAY BE COMMINGLED WITH OTHER MONIES HELD BY LENDER.
7.7.4
INTENTIONALLY OMITTED.
7.7.5
BORROWER SHALL NOT, WITHOUT OBTAINING THE PRIOR
WRITTEN CONSENT OF LENDER, FURTHER PLEDGE, ASSIGN OR GRANT ANY SECURITY INTEREST
IN ANY RESERVE FUND OR THE MONIES DEPOSITED THEREIN OR PERMIT ANY LIEN OR
ENCUMBRANCE TO ATTACH THERETO, OR ANY LEVY TO BE MADE THEREON, OR ANY UCC-1
FINANCING STATEMENTS, EXCEPT THOSE NAMING LENDER AS THE SECURED PARTY, TO BE
FILED WITH RESPECT THERETO.
7.7.6
LENDER SHALL NOT BE LIABLE FOR ANY LOSS SUSTAINED
ON THE INVESTMENT OF ANY FUNDS CONSTITUTING THE RESERVE FUNDS UNLESS OCCASIONED
BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LENDER.
7.7.7
UPON PAYMENT IN FULL OF THE DEBT AND PERFORMANCE OF
ALL OTHER OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, LENDER
SHALL DISBURSE TO BORROWER ALL REMAINING RESERVE FUNDS.
ARTICLE
VIII
DEFAULTS
SECTION 8.1.
EVENT OF DEFAULT. (A)
EACH OF
THE FOLLOWING EVENTS SHALL CONSTITUTE AN EVENT OF DEFAULT HEREUNDER (AN "EVENT
OF DEFAULT"):
(I)
IF ANY PORTION OF THE DEBT IS NOT PAID
ON THE APPLICABLE DUE DATE;
(II)
IF ANY OF THE TAXES OR OTHER CHARGES ARE
NOT PAID PRIOR TO THE DATE WHEN THE SAME BECOME DELINQUENT, EXCEPT TO THE EXTENT
THAT BORROWER IS CONTESTING SAME IN ACCORDANCE WITH THE TERMS OF SECTION 5.1.2
HEREOF, OR THERE ARE SUFFICIENT FUNDS IN THE TAX AND INSURANCE ESCROW FUND TO
PAY SUCH TAXES OR OTHER CHARGES AND LENDER FAILS TO OR REFUSES TO RELEASE THE
SAME FROM THE TAX AND INSURANCE ESCROW FUND;
68
(III)
IF THE POLICIES ARE NOT KEPT IN FULL FORCE
AND EFFECT, OR IF CERTIFIED COPIES OF THE POLICIES ARE NOT DELIVERED TO LENDER
WITHIN TEN (10) DAYS OF REQUEST;
(IV)
IF BORROWER TRANSFERS OR ENCUMBERS ANY PORTION
OF THE PROPERTY WITHOUT LENDER'S PRIOR WRITTEN CONSENT (TO EXTENT SUCH CONSENT
IS REQUIRED) OR OTHERWISE VIOLATES THE PROVISIONS OF SECTION 5.2.13 OF THIS LOAN
AGREEMENT;
(V)
IF ANY MATERIAL REPRESENTATION OR WARRANTY
MADE BY BORROWER HEREIN OR IN ANY OTHER LOAN DOCUMENT, OR IN ANY REPORT,
CERTIFICATE, FINANCIAL STATEMENT OR OTHER INSTRUMENT, AGREEMENT OR DOCUMENT
FURNISHED TO LENDER SHALL HAVE BEEN FALSE OR MISLEADING IN ANY MATERIAL RESPECT
AS OF THE DATE THE REPRESENTATION OR WARRANTY WAS MADE;
(VI)
IF BORROWER OR INDEMNITOR OR ANY GUARANTOR
UNDER ANY GUARANTY OR INDEMNITY ISSUED IN CONNECTION WITH THE LOAN SHALL MAKE AN
ASSIGNMENT FOR THE BENEFIT OF CREDITORS;
(VII)
IF A RECEIVER, LIQUIDATOR OR TRUSTEE SHALL BE
APPOINTED FOR BORROWER OR ANY GUARANTOR OR INDEMNITOR UNDER ANY GUARANTEE OR
INDEMNITY ISSUED IN CONNECTION WITH THE LOAN OR IF BORROWER OR SUCH GUARANTOR OR