LENDER, BORROWER, AT ITS OWN EXPENSE, MAY CONTEST BY APPROPRIATE LEGAL
PROCEEDING PROMPTLY INITIATED AND CONDUCTED IN GOOD FAITH AND WITH DUE
DILIGENCE, THE VALIDITY OF ANY LEGAL REQUIREMENT, THE APPLICABILITY OF ANY LEGAL
REQUIREMENT TO BORROWER OR THE PROPERTY OR ANY ALLEGED VIOLATION OF ANY LEGAL
REQUIREMENT, PROVIDED THAT (I) NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND
REMAINS UNCURED; (II) INTENTIONALLY OMITTED; (III) SUCH PROCEEDING SHALL BE
PERMITTED UNDER AND BE CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF ANY
INSTRUMENT TO WHICH BORROWER IS SUBJECT AND SHALL NOT CONSTITUTE A DEFAULT
THEREUNDER AND SUCH PROCEEDING SHALL BE CONDUCTED IN ACCORDANCE WITH ALL
APPLICABLE STATUTES, LAWS AND ORDINANCES; (IV) NEITHER THE PROPERTY NOR ANY PART
THEREOF OR INTEREST THEREIN WILL BE IN IMMEDIATE DANGER OF BEING SOLD,
FORFEITED, TERMINATED, CANCELLED OR LOST; (V) BORROWER SHALL PROMPTLY UPON FINAL
DETERMINATION THEREOF COMPLY WITH ANY SUCH LEGAL REQUIREMENT DETERMINED TO BE
VALID OR APPLICABLE OR CURE ANY VIOLATION OF ANY LEGAL REQUIREMENT; (VI) SUCH
PROCEEDING SHALL SUSPEND THE ENFORCEMENT OF THE CONTESTED LEGAL REQUIREMENT
AGAINST BORROWER OR THE PROPERTY; AND (VII) BORROWER SHALL FURNISH SUCH SECURITY
AS MAY BE REQUIRED IN THE PROCEEDING, OR AS MAY BE REQUESTED BY LENDER, TO
INSURE COMPLIANCE WITH SUCH LEGAL REQUIREMENT, TOGETHER WITH ALL INTEREST AND
PENALTIES PAYABLE IN CONNECTION THEREWITH.
LENDER MAY APPLY ANY SUCH SECURITY,
AS NECESSARY TO CAUSE COMPLIANCE WITH SUCH LEGAL REQUIREMENT AT ANY TIME WHEN,
IN THE REASONABLE JUDGMENT OF LENDER, THE VALIDITY, APPLICABILITY OR VIOLATION
OF SUCH LEGAL REQUIREMENT IS FINALLY ESTABLISHED OR THE PROPERTY (OR ANY PART
THEREOF OR INTEREST THEREIN) SHALL BE IN DANGER OF BEING SOLD, FORFEITED,
TERMINATED, CANCELLED OR LOST.
PROVIDED NO EVENT OF DEFAULT THEN EXISTS, ANY
SECURITY DEPOSITED WITH LENDER PURSUANT TO THIS SECTION 5.1.1 MAY BE USED TO
SATISFY COMPLIANCE WITH THE RELATED LEGAL REQUIREMENT WITH ANY EXCESS AFTER THE
SATISFACTION OF SAME TO BE RETURNED TO BORROWER.
5.1.2
TAXES AND OTHER CHARGES. BORROWER SHALL PAY OR CAUSE
TO BE PAID ALL TAXES AND OTHER CHARGES NOW OR HEREAFTER LEVIED OR ASSESSED OR
IMPOSED AGAINST THE PROPERTY OR ANY PART THEREOF AS THE SAME BECOME DUE AND
PAYABLE; PROVIDED, HOWEVER, BORROWER'S OBLIGATION
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TO DIRECTLY PAY TO THE APPROPRIATE TAXING AUTHORITY TAXES SHALL BE SUSPENDED IF
BORROWER HAS DEPOSITED AMOUNTS FOR THE PAYMENT OF SUCH TAXES INTO THE TAX AND
INSURANCE ESCROW FUND PURSUANT TO OF SECTION 7.2 HEREOF.
BORROWER WILL DELIVER
TO LENDER RECEIPTS FOR PAYMENT OR OTHER EVIDENCE SATISFACTORY TO LENDER THAT THE
TAXES AND OTHER CHARGES HAVE BEEN SO PAID OR ARE NOT THEN DELINQUENT NO LATER
THAN TEN (10) DAYS PRIOR TO THE DATE ON WHICH THE TAXES AND/OR OTHER CHARGES
WOULD OTHERWISE BE DELINQUENT IF NOT PAID (PROVIDED, HOWEVER, THAT BORROWER IS
NOT REQUIRED TO FURNISH SUCH RECEIPTS FOR PAYMENT OF TAXES IN THE EVENT THAT
SUCH TAXES HAVE BEEN PAID BY LENDER PURSUANT TO SECTION 7.2 HEREOF).
IF
BORROWER PAYS OR CAUSES TO BE PAID ALL TAXES AND OTHER CHARGES AND PROVIDES A
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