AND IS CONTINUING UNDER THE LOAN
AGREEMENT, THE NOTE, THIS SECURITY INSTRUMENT OR ANY OF THE OTHER LOAN
DOCUMENTS, (II) BORROWER IS PERMITTED TO DO SO UNDER THE PROVISIONS OF ANY OTHER
MORTGAGE, DEED OF TRUST OR DEED TO SECURE DEBT AFFECTING THE PROPERTY, (III)
SUCH PROCEEDING SHALL SUSPEND THE COLLECTION OF THE LABOR AND MATERIAL COSTS
FROM BORROWER AND FROM THE PROPERTY OR BORROWER SHALL HAVE PAID ALL OF THE LABOR
AND MATERIAL COSTS (OR SUCH PORTION THEREOF AS TO WHICH COLLECTION IS NOT
SUSPENDED) UNDER PROTEST, (IV) 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, (V) NEITHER
THE PROPERTY NOR ANY PART THEREOF OR INTEREST THEREIN WILL BE IN IMMEDIATE
DANGER OF BEING SOLD, FORFEITED, TERMINATED, CANCELED OR LOST, AND (VI) BORROWER
SHALL HAVE FURNISHED THE SECURITY AS MAY BE REQUIRED IN THE PROCEEDING, OR AS
MAY BE REASONABLY REQUESTED BY LENDER TO INSURE THE PAYMENT OF ANY CONTESTED
LABOR AND MATERIAL COSTS, TOGETHER WITH ALL INTEREST AND PENALTIES THEREON.
9
SECTION 3.7
PERFORMANCE OF OTHER AGREEMENTS.
BORROWER SHALL OBSERVE
AND PERFORM EACH AND EVERY TERM, COVENANT AND PROVISION TO BE OBSERVED OR
PERFORMED BY BORROWER PURSUANT TO THE LOAN AGREEMENT, ANY OTHER LOAN DOCUMENT
AND ANY OTHER AGREEMENT OR RECORDED INSTRUMENT AFFECTING OR PERTAINING TO THE
PROPERTY AND ANY AMENDMENTS, MODIFICATIONS OR CHANGES THERETO.
SECTION 3.8
CHANGE OF NAME, IDENTITY OR STRUCTURE.
BORROWER SHALL
NOT CHANGE BORROWER'S NAME, IDENTITY (INCLUDING ITS TRADE NAME OR NAMES) OR, IF
NOT AN INDIVIDUAL, BORROWER'S CORPORATE, PARTNERSHIP OR OTHER STRUCTURE WITHOUT
NOTIFYING LENDER OF SUCH CHANGE IN WRITING AT LEAST THIRTY (30) DAYS PRIOR TO
THE EFFECTIVE DATE OF SUCH CHANGE AND, IN THE CASE OF A CHANGE IN BORROWER'S
STRUCTURE, WITHOUT FIRST OBTAINING THE PRIOR WRITTEN CONSENT OF LENDER.
BORROWER SHALL EXECUTE AND DELIVER TO LENDER, PRIOR TO OR CONTEMPORANEOUSLY WITH
THE EFFECTIVE DATE OF ANY SUCH CHANGE, ANY FINANCING STATEMENT OR FINANCING
STATEMENT CHANGE REQUIRED BY LENDER TO ESTABLISH OR MAINTAIN THE VALIDITY,
PERFECTION AND PRIORITY OF THE SECURITY INTEREST GRANTED HEREIN.
AT THE REQUEST
OF LENDER, BORROWER SHALL EXECUTE A CERTIFICATE IN FORM SATISFACTORY TO LENDER
LISTING THE TRADE NAMES UNDER WHICH BORROWER INTENDS TO OPERATE THE PROPERTY,
AND REPRESENTING AND WARRANTING THAT BORROWER DOES BUSINESS UNDER NO OTHER TRADE
NAME WITH RESPECT TO THE PROPERTY.
SECTION 3.9
TITLE.
BORROWER HAS GOOD, MARKETABLE AND INSURABLE TITLE
TO THE PROPERTY AND HAS THE RIGHT TO MORTGAGE, GRANT, BARGAIN, SELL, PLEDGE,
ASSIGN, WARRANT, TRANSFER AND CONVEY THE SAME.
BORROWER POSSESSES AN
UNENCUMBERED FEE AND/OR LEASEHOLD ESTATE IN THE LAND AND THE IMPROVEMENTS, FREE
AND CLEAR OF ALL LIENS (AS DEFINED IN THE LOAN AGREEMENT) WHATSOEVER EXCEPT THE
PERMITTED ENCUMBRANCES (AS DEFINED IN THE LOAN AGREEMENT), SUCH OTHER LIENS AS
ARE PERMITTED PURSUANT TO THE LOAN DOCUMENTS AND THE LIENS CREATED BY THE LOAN
DOCUMENTS.
THE PERMITTED ENCUMBRANCES IN THE AGGREGATE DO NOT MATERIALLY AND
ADVERSELY AFFECT THE