PROPERTY
FORMS NO PART OF ANY PROPERTY OWNED, USED OR CLAIMED BY GRANTOR AS A RESIDENCE
OR BUSINESS HOMESTEAD AND IS NOT EXEMPT FROM FORCED SALE UNDER THE LAWS OF THE
STATE IN WHICH THE MORTGAGED PROPERTY IS LOCATED. GRANTOR HEREBY DISCLAIMS AND
RENOUNCES EACH AND EVERY CLAIM TO ALL OR ANY PORTION OF THE MORTGAGED PROPERTY
AS A HOMESTEAD.
3.5
TAXES. GRANTOR AND EACH CONSTITUENT PARTY HAVE FILED ALL FEDERAL,
STATE, COUNTY, MUNICIPAL, AND CITY INCOME AND OTHER TAX RETURNS REQUIRED TO HAVE
BEEN FILED BY THEM (INCLUDING, THOSE REQUIRED UNDER THE TAX CODE) AND HAVE PAID
ALL TAXES AND RELATED LIABILITIES WHICH HAVE BECOME DUE PURSUANT TO SUCH RETURNS
OR PURSUANT TO ANY ASSESSMENTS RECEIVED BY THEM. NEITHER GRANTOR NOR ANY
CONSTITUENT PARTY KNOWS OF ANY BASIS FOR ANY ADDITIONAL ASSESSMENT IN RESPECT OF
ANY SUCH TAXES AND RELATED LIABILITIES. GRANTOR AND EACH CONSTITUENT PARTY
BELIEVE THAT THEIR RESPECTIVE TAX RETURNS PROPERLY REFLECT THE INCOME AND TAXES
OF GRANTOR AND EACH CONSTITUENT PARTY FOR THE PERIODS COVERED THEREBY, SUBJECT
ONLY TO REASONABLE ADJUSTMENTS REQUIRED BY THE INTERNAL REVENUE SERVICE OR OTHER
APPLICABLE TAX AUTHORITY UPON AUDIT.
3.6
MAILING ADDRESS. GRANTOR'S MAILING ADDRESS, AS SET FORTH IN THE
OPENING PARAGRAPH HEREOF OR AS CHANGED PURSUANT TO THE PROVISIONS HEREOF, IS
TRUE AND CORRECT.
3.7
RELATIONSHIP OF GRANTOR AND BENEFICIARY. NOTWITHSTANDING ANY PRIOR
BUSINESS OR PERSONAL RELATIONSHIP BETWEEN GRANTOR AND BENEFICIARY, OR ANY
OFFICER, DIRECTOR OR EMPLOYEE OF BENEFICIARY, THE RELATIONSHIP BETWEEN GRANTOR
AND BENEFICIARY IS SOLELY THAT OF DEBTOR AND CREDITOR, BENEFICIARY HAS NO
FIDUCIARY OR OTHER SPECIAL RELATIONSHIP WITH GRANTOR, GRANTOR AND BENEFICIARY
ARE NOT PARTNERS OR JOINT VENTURERS, AND NO TERM OR CONDITION OF ANY OF THE LOAN
DOCUMENTS SHALL BE CONSTRUED SO AS TO DEEM THE RELATIONSHIP BETWEEN GRANTOR AND
BENEFICIARY TO BE OTHER THAN THAT OF DEBTOR AND CREDITOR.
3.8
NO RELIANCE ON BENEFICIARY. GRANTOR IS EXPERIENCED IN THE
OWNERSHIP AND OPERATION OF PROPERTIES SIMILAR TO THE MORTGAGED PROPERTY, AND
GRANTOR AND BENEFICIARY HAVE AND ARE RELYING SOLELY UPON GRANTOR'S EXPERTISE AND
BUSINESS PLAN IN CONNECTION WITH THE OWNERSHIP AND OPERATION OF THE MORTGAGED
PROPERTY. GRANTOR IS NOT RELYING ON BENEFICIARY'S EXPERTISE OR BUSINESS ACUMEN
IN CONNECTION WITH THE MORTGAGED PROPERTY.
3.9
ENVIRONMENTAL AND HAZARDOUS SUBSTANCES. THE FOLLOWING
REPRESENTATIONS AND WARRANTIES OF GRANTOR ARE MADE WITHOUT REGARD TO WHETHER
BENEFICIARY HAS, OR HEREAFTER OBTAINS, ANY KNOWLEDGE OR REPORT OF THE
ENVIRONMENTAL CONDITION OF THE MORTGAGED PROPERTY. TO THE BEST KNOWLEDGE,
INFORMATION AND BELIEF OF GRANTOR:
(A)
THE MORTGAGED PROPERTY AND THE OPERATIONS CONDUCTED THEREON DO NOT
VIOLATE ANY APPLICABLE LAW, STATUTE, ORDINANCE, RULE, REGULATION, ORDER, OR
DETERMINATION OF ANY GOVERNMENTAL AUTHORITY OR ANY RESTRICTIVE COVENANT OR DEED
RESTRICTION (RECORDED OR OTHERWISE), INCLUDING WITHOUT LIMITATION ALL APPLICABLE
ZONING ORDINANCES AND BUILDING CODES, FLOOD DISASTER LAWS AND ENVIRONMENTAL
LAWS.
9
(B)
WITHOUT LIMITATION OF SUBSECTION (A) IMMEDIATELY PRECEDING, THE
MORTGAGED PROPERTY AND OPERATIONS CONDUCTED THEREON BY THE CURRENT OWNER OR
OPERATOR OF SUCH MORTGAGED PROPERTY, ARE NOT IN VIOLATION OF OR SUBJECT TO ANY
EXISTING, PENDING,