TO THE OBLIGATIONS HEREBY SECURED. THE ARRANGEMENTS PROVIDED FOR IN SECTIONS
1.5(D) AND 1.5(F)(III) ARE SOLELY FOR THE ADDED PROTECTION OF BENEFICIARY. IN
THE EVENT BENEFICIARY ELECTS TO APPLY ANY AMOUNTS PAID TO IT BY OR ON BEHALF OF
GRANTOR PURSUANT TO SECTION 1.5(D) OR SECTION 1.5(F)(III) HEREOF IN RESPECT OF
TAXES OR INSURANCE PREMIUMS (BUT NOT ANY AMOUNTS ESTABLISHED AS RESERVES BY
BENEFICIARY) TO THE OBLIGATIONS, BENEFICIARY SHALL NOTIFY GRANTOR OF SUCH
ELECTION IN A TIMELY MANNER.
1.6
CONDEMNATION.
GRANTOR, IMMEDIATELY UPON OBTAINING KNOWLEDGE OF
THE INSTITUTION OF ANY PROCEEDINGS FOR THE CONDEMNATION OF THE MORTGAGED
PROPERTY, OR ANY PORTION THEREOF, SHALL NOTIFY BENEFICIARY THAT SUCH PROCEEDINGS
ARE PENDING. BENEFICIARY SHALL BE ENTITLED TO ALL COMPENSATION AWARDS, DAMAGES,
CLAIMS, RIGHTS OF ACTION AND PROCEEDS OF, OR ON ACCOUNT OF, ANY DAMAGE OR TAKING
THROUGH CONDEMNATION AND IS HEREBY AUTHORIZED, AT ITS OPTION TO COMMENCE, APPEAR
IN AND PROSECUTE IN ITS OWN OR GRANTOR'S NAME ANY ACTION OR PROCEEDING RELATING
TO ANY CONDEMNATION AND TO SETTLE OR COMPROMISE ANY CLAIM IN CONNECTION
THEREWITH. BENEFICIARY IS HEREBY AUTHORIZED TO COLLECT AND RECEIVE SAID AWARDS,
DAMAGES AND OTHER PROCEEDS AND TO GIVE PROPER RECEIPTS AND ACQUITTANCES
THEREFOR. ALL SUCH COMPENSATION AWARDS, DAMAGES, CLAIMS, RIGHTS OF ACTION AND
PROCEEDS, AND ANY OTHER PAYMENTS OR RELIEF, AND THE RIGHT THERETO, ARE INCLUDED
IN THE MORTGAGED PROPERTY. AFTER DEDUCTING THEREFROM ALL ITS REASONABLE EXPENSES
INCLUDING REASONABLE ATTORNEYS' FEES AND REASONABLE LEGAL EXPENSES, AT ITS
OPTION, BENEFICIARY MAY APPLY THE NET PROCEEDS RECEIVED AT ANY TIME EITHER TO
THE COSTS OF REPLACEMENT OF ANY OF THE MORTGAGED PROPERTY AND/OR TO PAYMENT OF
ANY OF THE OBLIGATIONS, WHETHER OR NOT THEN DUE, IN ANY ORDER AND IN SUCH MANNER
AS LENDER, IN ITS DISCRETION, MAY DETERMINE. GRANTOR AGREES TO EXECUTE SUCH
FURTHER ASSIGNMENTS OF ANY COMPENSATION AWARDS, DAMAGES, CLAIMS, RIGHTS OF
ACTION AND PROCEEDS AS BENEFICIARY MAY REASONABLY REQUIRE.
NOTWITHSTANDING ANY
SUCH CONDEMNATION, GRANTOR SHALL CONTINUE TO PAY INTEREST, COMPUTED AT THE
INTEREST RATE PROVIDED IN THE CREDIT DOCUMENTS, ON THE ENTIRE UNPAID PRINCIPAL
AMOUNT THEREOF.
1.7
CARE OF MORTGAGED PROPERTY.
(A)
GRANTOR SHALL PRESERVE AND MAINTAIN, OR CAUSE TO BE PRESERVED AND
MAINTAINED, THE MORTGAGED PROPERTY INCLUDING ALL APPURTENANCES THERETO IN GOOD
REPAIR AND CONDITION AND IN COMPLIANCE WITH THE REQUIREMENTS, IF ANY, OF ANY
ENCUMBRANCES PERMITTED HEREUNDER, AT ITS OWN COST, AND WILL FROM TIME TO TIME
MAKE, OR CAUSE TO BE MADE, ALL REPAIRS,
12
REPLACEMENTS, RENEWALS AND PAYMENTS NECESSARY TO CONTINUE TO MAINTAIN THE
MORTGAGED PROPERTY IN SUCH STATE OF REPAIR, CONDITION AND COMPLIANCE. GRANTOR
SHALL NOT PERMIT, COMMIT OR SUFFER ANY WASTE, IMPAIRMENT OR DETERIORATION OF THE
MORTGAGED PROPERTY OR OF ANY PART THEREOF, ORDINARY WEAR AND TEAR EXCEPTED AND
EXCEPT TO THE EXTENT THAT THE REMOVAL OF MINERALS BY GRANTOR IN THE ORDINARY
COURSE OF ITS BUSINESS MAY IMPAIR OR REDUCE THE VALUE OF THE MORTGAGED PROPERTY
AS A RESULT OF THE REMOVAL OF SUCH MINERALS, SUBJECT TO SECTION 1.8 HEREOF AS TO
ENVIRONMENTAL MATTERS.
(B)
EXCEPT AS OTHERWISE PROVIDED