§ 9601 ET SEQ.
("CERCLA"),
IF APPLICABLE, AND IN ACCORDANCE WITH OTHER APPLICABLE ENVIRONMENTAL LAWS.
IN
ALL EVENTS, SUCH REMEDIAL WORK SHALL BE COMMENCED WITHIN SUCH PERIOD OF TIME AS
REQUIRED UNDER ANY APPLICABLE ENVIRONMENTAL LAW.
IF ANY FUNGUS, MOLD, MILDEW OR
OTHER BIOLOGICAL AGENT IS PRESENT AT ANY MORTGAGED PROPERTY IN A MANNER OR AT A
LEVEL THAT IS REASONABLY LIKELY TO MATERIALLY ADVERSELY AFFECT THE VALUE OR
UTILITY OF SUCH MORTGAGED PROPERTY OR THAT POSES A SIGNIFICANT HEALTH RISK, THE
BORROWER SHALL PROMPTLY COMMENCE AND DILIGENTLY PROSECUTE TO COMPLETION THE
REMEDIATION OF SUCH CONDITION TO THE REASONABLE SATISFACTION OF THE LENDER OR
ITS SERVICER.
(II) IF REQUESTED BY LENDER, ALL REMEDIAL WORK UNDER CLAUSE (I) ABOVE SHALL BE
PERFORMED BY CONTRACTORS, AND, IF THE WORK IS REASONABLY ANTICIPATED TO COST IN
EXCESS OF $75,000, UNDER THE SUPERVISION OF A CONSULTING ENGINEER, EACH APPROVED
IN ADVANCE BY LENDER WHICH APPROVAL SHALL NOT BE UNREASONABLY WITHHELD OR
DELAYED.
BORROWER SHALL PAY ALL COSTS AND EXPENSES REASONABLY INCURRED IN
CONNECTION WITH SUCH REMEDIAL WORK.
IF BORROWER DOES NOT TIMELY COMMENCE AND
DILIGENTLY PROSECUTE TO COMPLETION THE REMEDIAL WORK, LENDER MAY (BUT SHALL NOT
BE OBLIGATED TO), UPON 10 DAYS PRIOR WRITTEN NOTICE TO BORROWER OF ITS INTENTION
TO DO SO, CAUSE SUCH REMEDIAL WORK TO BE PERFORMED.
BORROWER SHALL PAY OR
REIMBURSE LENDER ON DEMAND FOR ALL EXPENSES (INCLUDING REASONABLE ATTORNEYS'
FEES AND DISBURSEMENTS, BUT EXCLUDING INTERNAL OVERHEAD, ADMINISTRATIVE AND
SIMILAR COSTS OF LENDER) REASONABLY RELATING TO OR INCURRED BY LENDER IN
CONNECTION WITH MONITORING, REVIEWING OR PERFORMING ANY REMEDIAL WORK IN
ACCORDANCE HEREWITH.
(III) BORROWER SHALL NOT COMMENCE ANY REMEDIAL WORK UNDER CLAUSE (I) ABOVE, NOR
ENTER INTO ANY SETTLEMENT AGREEMENT, CONSENT DECREE OR OTHER COMPROMISE RELATING
TO ANY HAZARDOUS SUBSTANCES OR ENVIRONMENTAL LAWS WITHOUT PROVIDING NOTICE TO
LENDER AS PROVIDED IN SECTION 5.1(F).
NOTWITHSTANDING THE FOREGOING, IF THE
PRESENCE OR THREATENED PRESENCE OF HAZARDOUS SUBSTANCES ON, UNDER, ABOUT OR
EMANATING FROM THE MORTGAGED PROPERTY POSES AN IMMEDIATE THREAT TO THE HEALTH,
SAFETY OR WELFARE OF ANY PERSON OR THE ENVIRONMENT, OR IS OF SUCH A NATURE THAT
AN IMMEDIATE RESPONSE IS NECESSARY OR REQUIRED UNDER APPLICABLE ENVIRONMENTAL
LAW, BORROWER MAY COMPLETE ALL NECESSARY REMEDIAL WORK.
IN SUCH EVENTS,
BORROWER SHALL NOTIFY LENDER AS SOON AS PRACTICABLE AND, IN ANY EVENT, WITHIN
THREE (3) BUSINESS DAYS, OF ANY ACTION TAKEN.
(IV) IN THE EVENT THE ENVIRONMENTAL REPORT RECOMMENDS THE DEVELOPMENT OF AN
OPERATION AND MAINTENANCE PROGRAM FOR ANY RECOGNIZED ENVIRONMENTAL CONDITION AT
A MORTGAGED PROPERTY (INCLUDING, WITHOUT LIMITATION, UNDERGROUND STORAGE TANKS
ASBESTOS AND ASBESTOS CONTAINING MATERIALS, LEAD-BASED PAINTS AND LEAD IN WATER
SUPPLIES) ("O & M PROGRAM"), BORROWER SHALL DEVELOP AN O & M PROGRAM, AS
APPROVED BY LENDER, IN LENDER'S SOLE DISCRETION, AND SHALL, DURING THE TERM OF
THE LOAN, INCLUDING ANY EXTENSION OR RENEWAL THEREOF, COMPLY IN ALL RESPECTS
WITH THE TERMS AND CONDITIONS OF THE O & M PROGRAM.
60
(E)
ENVIRONMENTAL MATTERS: INSPECTION.
(I) BORROWER SHALL NOT KNOWINGLY PERMIT ANY HAZARDOUS SUBSTANCES TO BE PRESENT