ZONING PROVISIONS THE USE OF THE PROPERTY IS OR SHALL
BECOME A NONCONFORMING USE, BORROWER SHALL NOT CAUSE OR PERMIT SUCH
NONCONFORMING USE TO BE DISCONTINUED OR ABANDONED WITHOUT THE CONSENT OF LENDER;
AND (C) BORROWER SHALL NOT (I) CHANGE THE USE OF THE PROPERTY, OR (II) PERMIT OR
SUFFER TO OCCUR ANY WASTE ON OR TO THE PROPERTY.
4.
TRANSFER OR ENCUMBRANCE OF THE PROPERTY.
(A)
BORROWER ACKNOWLEDGES THAT (I) LENDER HAS EXAMINED AND RELIED ON
THE CREDITWORTHINESS AND EXPERIENCE OF THE PRINCIPALS OF BORROWER IN OWNING AND
OPERATING PROPERTIES SUCH AS THE PROPERTY IN AGREEING TO MAKE THE LOAN,
(II) LENDER WILL CONTINUE TO RELY ON BORROWER'S OWNERSHIP OF THE PROPERTY AS A
MEANS OF MAINTAINING THE VALUE OF THE PROPERTY AS SECURITY FOR THE DEBT, AND
(III) LENDER HAS A VALID INTEREST IN MAINTAINING THE VALUE OF THE PROPERTY SO AS
TO ENSURE THAT, SHOULD BORROWER DEFAULT IN THE REPAYMENT OF THE DEBT, LENDER CAN
RECOVER THE DEBT BY A SALE OF THE PROPERTY.
BORROWER SHALL NOT SELL, CONVEY,
ALIENATE, MORTGAGE, ENCUMBER, PLEDGE OR OTHERWISE TRANSFER THE PROPERTY OR ANY
PART THEREOF, OR SUFFER OR PERMIT ANY TRANSFER TO OCCUR, OTHER THAN A PERMITTED
TRANSFER OR AS OTHERWISE EXPRESSLY PERMITTED UNDER THE LOAN DOCUMENTS.
(B)
LENDER SHALL NOT BE REQUIRED TO DEMONSTRATE ANY ACTUAL IMPAIRMENT
OF ITS SECURITY OR ANY INCREASED RISK OF DEFAULT HEREUNDER IN ORDER TO DECLARE
THE DEBT IMMEDIATELY DUE AND PAYABLE UPON TRANSFER IN VIOLATION OF THIS
PARAGRAPH 4.
THIS PROVISION SHALL APPLY TO EVERY SALE, CONVEYANCE, ALIENATION,
MORTGAGE, ENCUMBRANCE, PLEDGE OR TRANSFER OF THE PROPERTY (AND EVERY OTHER
TRANSFER) REGARDLESS OF WHETHER VOLUNTARY OR NOT.
ANY TRANSFER MADE IN
CONTRAVENTION OF THIS PARAGRAPH 4 SHALL BE NULL AND VOID AND OF NO FORCE AND
EFFECT, TO THE FULLEST EXTENT PERMITTED BY LAW.
BORROWER AGREES TO BEAR AND
SHALL PAY OR REIMBURSE LENDER ON DEMAND FOR ALL REASONABLE EXPENSES (INCLUDING
REASONABLE ATTORNEYS' FEES AND DISBURSEMENTS, TITLE SEARCH COSTS AND TITLE
INSURANCE ENDORSEMENT PREMIUMS) INCURRED BY LENDER IN CONNECTION WITH THE
REVIEW, APPROVAL AND DOCUMENTATION OF ANY PERMITTED TRANSFER.
5.
CHANGES IN LAWS REGARDING TAXATION.
IF ANY LAW IS ENACTED OR
ADOPTED OR AMENDED AFTER THE DATE OF THIS SECURITY INSTRUMENT WHICH DEDUCTS THE
DEBT FROM THE VALUE OF THE PROPERTY FOR THE PURPOSE OF TAXATION OR WHICH IMPOSES
A TAX, EITHER DIRECTLY OR INDIRECTLY, ON THE DEBT OR LENDER'S INTEREST IN THE
PROPERTY, BORROWER WILL PAY SUCH TAX, WITH INTEREST AND PENALTIES THEREON, IF
ANY.
IF LENDER IS ADVISED BY ITS COUNSEL THAT THE PAYMENT OF SUCH TAX OR
INTEREST AND PENALTIES BY BORROWER WOULD BE UNLAWFUL, TAXABLE TO LENDER OR
UNENFORCEABLE, OR WOULD PROVIDE THE BASIS FOR A DEFENSE OF USURY, THEN LENDER
SHALL HAVE THE OPTION, BY NOTICE OF NOT LESS THAN 90 DAYS, TO DECLARE THE DEBT
IMMEDIATELY DUE AND PAYABLE.
6.
NO CREDITS ON ACCOUNT OF THE DEBT.
BORROWER SHALL NOT CLAIM OR
DEMAND OR BE ENTITLED TO ANY CREDIT ON ACCOUNT OF THE DEBT FOR ANY PART OF