NOT APPLY ANY SUCH SUMS TO THE PAYMENT OF PRINCIPAL UNLESS IT
HAS ACCELERATED THE LOAN, (B) EXERCISE ANY AND ALL RIGHTS AND REMEDIES OF A
SECURED PARTY UNDER THE CODE, OR (C) EXERCISE ANY OTHER REMEDIES AVAILABLE AT
LAW OR IN EQUITY.
NO SUCH USE OR APPLICATION OF THE FUNDS CONTAINED IN THE
RESERVES SHALL BE DEEMED TO CURE ANY DEFAULT HEREUNDER OR UNDER THE OTHER LOAN
DOCUMENTS.
31
(B)
THE RESERVES ARE SOLELY FOR THE PROTECTION OF LENDER AND ENTAIL NO
RESPONSIBILITY ON LENDER'S PART BEYOND THE PAYMENT OF THE RESPECTIVE COSTS AND
EXPENSES IN ACCORDANCE WITH THE TERMS THEREOF AND BEYOND THE ALLOWING OF DUE
CREDIT FOR THE SUMS ACTUALLY RECEIVED.
UPON ASSIGNMENT OF THIS LOAN AGREEMENT
BY LENDER, ANY FUNDS IN THE RESERVES SHALL BE TURNED OVER TO THE ASSIGNEE AND
ANY RESPONSIBILITY OF LENDER, AS ASSIGNOR, WITH RESPECT THERETO SHALL
TERMINATE.
UPON FULL PAYMENT OF THE INDEBTEDNESS SECURED HEREBY IN ACCORDANCE
WITH ITS TERMS (OR IF EARLIER, THE COMPLETION OF THE APPLICABLE CONDITIONS TO
RELEASE OF EACH RESERVE TO LENDER'S REASONABLE SATISFACTION) OR AT SUCH EARLIER
TIME AS LENDER MAY ELECT, THE BALANCE IN THE RESERVES THEN IN LENDER'S
POSSESSION SHALL BE PAID OVER TO BORROWER.
(C)
ANY AMOUNTS RECEIVED BY LENDER FROM BORROWER MAY BE INVESTED BY
LENDER (OR ITS SERVICER) FOR ITS BENEFIT, AND LENDER SHALL NOT BE OBLIGATED TO
PAY, OR CREDIT, ANY INTEREST EARNED THEREON TO BORROWER EXCEPT AS MAY BE
OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT.
6.7
ACCOUNT RELATIONSHIP.
BORROWER AGREES, AT
ALL TIMES WHILE THE LOAN CONTINUES IN EFFECT, TO MAINTAIN THE SPECIAL ACCOUNT IN
A DEPOSITORY RELATIONSHIP WITH LENDER, AS BORROWER'S BANK ACCOUNT AND DEPOSITORY
FOR THE BORROWER AND THE MORTGAGED PROPERTY.
ARTICLE VII
EVENTS OF DEFAULT
7.1
EVENTS OF DEFAULT.
EACH OF THE FOLLOWING
SHALL CONSTITUTE AN "EVENT OF DEFAULT" HEREUNDER:
(A)
IF BORROWER SHALL FAIL, REFUSE, OR NEGLECT TO PAY, IN FULL, ANY
INSTALLMENT OR PORTION OF THE INDEBTEDNESS AS AND WHEN THE SAME SHALL BECOME DUE
AND PAYABLE, WHETHER AT THE DUE DATE THEREOF STIPULATED IN THE LOAN DOCUMENTS,
UPON ACCELERATION OR OTHERWISE.
(B)
IF BORROWER SHALL FAIL, REFUSE OR NEGLECT TO COMPLY WITH, PERFORM
AND DISCHARGE FULLY AND TIMELY ANY OF THE OBLIGATIONS AS AND WHEN CALLED FOR;
PROVIDED, HOWEVER, THAT A FAILURE BY BORROWER TO TIMELY SATISFY AN OBLIGATION
SHALL NOT CONSTITUTE AN "EVENT OF DEFAULT" HEREUNDER OR UNDER ANY OF THE LOAN
DOCUMENTS, IF (I) SUCH FAILURE DOES NOT CONSTITUTE AN EVENT OF DEFAULT PURSUANT
TO ANY OTHER SUBSECTION OF THIS SECTION 7.1 OTHER THAN THIS SUBSECTION (B), AND
(II) SUCH FAILURE IS FULLY CURED BY BORROWER ON OR BEFORE THE EXPIRATION OF THE
CURE PERIOD (HEREINAFTER DEFINED).
AS USED IN THIS SUBSECTION 7.1(B), THE TERM
"CURE PERIOD" MEANS A THIRTY (30) DAY PERIOD COMMENCING UPON LENDER'S WRITTEN
NOTICE TO BORROWER OF BORROWER'S FAILURE TO SATISFY THE SUBJECT OBLIGATION;
PROVIDED, HOWEVER, IF (1) THE SUBJECT FAILURE IS, BY ITS NATURE, NOT READILY
SUSCEPTIBLE TO CURE WITHIN THIRTY (30) DAYS, AND (2)