VALUE, OPERATION OR USE OF THE PROPERTY OR BORROWER'S
ABILITY TO REPAY THE LOAN.
THIS SECURITY INSTRUMENT, WHEN PROPERLY RECORDED IN
THE APPROPRIATE RECORDS, TOGETHER WITH ANY UNIFORM COMMERCIAL CODE FINANCING
STATEMENTS REQUIRED TO BE FILED IN CONNECTION THEREWITH, WILL CREATE (A) A
VALID, PERFECTED FIRST PRIORITY LIEN ON THAT PORTION OF THE PROPERTY
CONSTITUTING INTERESTS IN REAL ESTATE, SUBJECT ONLY TO PERMITTED ENCUMBRANCES
AND THE LIENS CREATED BY THE LOAN DOCUMENTS AND (B) TO THE EXTENT THAT A
SECURITY INTEREST THEREIN MAYBE PERFECTED BY THE FILING OF FINANCING STATEMENTS
UNDER THE UNIFORM COMMERCIAL CODE, PERFECTED SECURITY INTERESTS IN AND TO, AND
PERFECTED COLLATERAL ASSIGNMENTS OF, ALL PERSONALTY (INCLUDING, TO THE EXTENT
THAT THEY CONSTITUTE PERSONALTY SUBJECT TO THE UNIFORM COMMERCIAL CODE, THE
LEASES), ALL IN ACCORDANCE WITH THE TERMS THEREOF, IN EACH CASE SUBJECT ONLY TO
ANY APPLICABLE PERMITTED ENCUMBRANCES, SUCH OTHER LIENS AS ARE PERMITTED
PURSUANT TO THE LOAN DOCUMENTS AND THE LIENS CREATED BY THE LOAN DOCUMENTS.
THERE ARE NO CLAIMS FOR PAYMENT FOR WORK, LABOR OR MATERIALS AFFECTING THE
PROPERTY WHICH ARE PAST DUE AND ARE OR MAY BECOME A LIEN PRIOR TO, OR OF EQUAL
PRIORITY WITH, THE LIENS CREATED BY THE LOAN DOCUMENTS UNLESS SUCH CLAIMS FOR
PAYMENTS ARE BEING CONTESTED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS
SECURITY INSTRUMENT.
10
ARTICLE IV - OBLIGATIONS AND RELIANCES
SECTION 4.1
RELATIONSHIP OF BORROWER AND LENDER.
THE RELATIONSHIP
BETWEEN BORROWER AND LENDER IS SOLELY THAT OF DEBTOR AND CREDITOR, AND LENDER
HAS NO FIDUCIARY OR OTHER SPECIAL RELATIONSHIP WITH BORROWER, AND NO TERM OR
CONDITION OF THE LOAN AGREEMENT, THE NOTE, THIS SECURITY INSTRUMENT AND THE
OTHER LOAN DOCUMENTS SHALL BE CONSTRUED SO AS TO DEEM THE RELATIONSHIP BETWEEN
BORROWER AND LENDER TO BE OTHER THAN THAT OF DEBTOR AND CREDITOR.
SECTION 4.2
NO RELIANCE ON LENDER.
THE GENERAL PARTNERS, MEMBERS,
PRINCIPALS AND (IF BORROWER IS A TRUST) BENEFICIAL OWNERS OF BORROWER ARE
EXPERIENCED IN THE OWNERSHIP AND OPERATION OF PROPERTIES SIMILAR TO THE
PROPERTY, AND BORROWER AND LENDER ARE RELYING SOLELY UPON SUCH EXPERTISE AND
BUSINESS PLAN IN CONNECTION WITH THE OWNERSHIP AND OPERATION OF THE PROPERTY.
BORROWER IS NOT RELYING ON LENDER'S EXPERTISE, BUSINESS ACUMEN OR ADVICE IN
CONNECTION WITH THE PROPERTY.
SECTION 4.3
NO LENDER OBLIGATIONS.
(A)
NOTWITHSTANDING THE
PROVISIONS OF SUBSECTIONS 1.1(H) AND (N) OR SECTION 1.2, LENDER IS NOT
UNDERTAKING THE PERFORMANCE OF (I) ANY OBLIGATIONS UNDER THE LEASES; OR (II) ANY
OBLIGATIONS WITH RESPECT TO SUCH AGREEMENTS, CONTRACTS, CERTIFICATES,
INSTRUMENTS, FRANCHISES, PERMITS, TRADEMARKS, LICENSES AND OTHER DOCUMENTS.
(B)
BY ACCEPTING OR APPROVING ANYTHING REQUIRED TO BE OBSERVED,
PERFORMED OR FULFILLED OR TO BE GIVEN TO LENDER PURSUANT TO THIS SECURITY
INSTRUMENT, THE LOAN AGREEMENT, THE NOTE OR THE OTHER LOAN DOCUMENTS, INCLUDING,
WITHOUT LIMITATION, ANY OFFICER'S CERTIFICATE, BALANCE SHEET, STATEMENT OF
PROFIT AND LOSS OR OTHER FINANCIAL STATEMENT, SURVEY, APPRAISAL, OR POLICY,
LENDER SHALL NOT BE DEEMED TO HAVE WARRANTED, CONSENTED TO, OR AFFIRMED THE
SUFFICIENCY, THE LEGALITY OR EFFECTIVENESS OF SAME, AND SUCH ACCEPTANCE OR
APPROVAL