THE TAX AND INSURANCE ESCROW FUND).
NO OTHER INVESTMENTS OF THE
SUMS ON DEPOSIT IN THE RESERVE FUNDS SHALL BE PERMITTED EXCEPT AS SET FORTH IN
THIS SECTION 7.12.
BORROWER SHALL BEAR ALL REASONABLE COSTS ASSOCIATED WITH THE
INVESTMENT OF THE SUMS IN THE ACCOUNT IN PERMITTED INVESTMENTS.
SUCH COSTS
SHALL BE DEDUCTED FROM THE INCOME OR EARNINGS ON SUCH INVESTMENT, IF ANY, AND TO
THE EXTENT SUCH INCOME OR EARNINGS SHALL NOT BE SUFFICIENT TO PAY SUCH COSTS,
SUCH COSTS SHALL BE PAID BY BORROWER PROMPTLY ON DEMAND BY LENDER.
LENDER SHALL
HAVE NO LIABILITY FOR THE RATE OF RETURN EARNED OR LOSSES INCURRED ON THE
INVESTMENT OF THE SUMS IN PERMITTED INVESTMENTS.
(B)
BORROWER SHALL INDEMNIFY LENDER AND HOLD LENDER HARMLESS FROM AND
AGAINST ANY AND ALL ACTIONS, SUITS, CLAIMS, DEMANDS, LIABILITIES, LOSSES,
DAMAGES, OBLIGATIONS AND COSTS AND EXPENSES (INCLUDING LITIGATION COSTS AND
REASONABLE ATTORNEYS FEES AND EXPENSES) ARISING FROM OR IN ANY WAY CONNECTED
WITH THE RESERVE FUNDS OR THE PERFORMANCE OF THE OBLIGATIONS FOR WHICH THE
RESERVE FUNDS WERE ESTABLISHED.
BORROWER SHALL ASSIGN TO LENDER ALL RIGHTS AND
CLAIMS BORROWER MAY HAVE AGAINST ALL PERSONS SUPPLYING LABOR, MATERIALS OR OTHER
SERVICES WHICH ARE TO BE PAID FROM OR SECURED BY THE RESERVE FUNDS; PROVIDED,
THAT LENDER MAY NOT PURSUE ANY SUCH RIGHT OR CLAIM UNLESS AN EVENT OF DEFAULT
HAS OCCURRED AND REMAINS UNCURED.
ARTICLE VIII.
DEFAULTS
SECTION 8.1.
EVENT OF DEFAULT.
166
(A)
EACH OF THE FOLLOWING EVENTS SHALL CONSTITUTE AN EVENT OF DEFAULT
HEREUNDER (AN "EVENT OF DEFAULT"):
(I)
IF ANY PORTION OF THE DEBT IS NOT PAID WHEN DUE;
(II)
IF ANY OF THE TAXES OR OTHER CHARGES ARE NOT PAID WHEN THE SAME
ARE DUE AND PAYABLE;
(III)
IF THE POLICIES ARE NOT KEPT IN FULL FORCE AND EFFECT, OR IF
CERTIFIED COPIES OF THE POLICIES ARE NOT DELIVERED TO LENDER PROMPTLY UPON
REQUEST;
(IV)
ANY TRANSFER OCCURS IN VIOLATION OF THE PROVISIONS OF THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS;
(V)
ANY REPRESENTATION OR WARRANTY MADE BY BORROWER HEREIN OR IN ANY
OTHER LOAN DOCUMENT, OR IN ANY REPORT, CERTIFICATE, FINANCIAL STATEMENT OR OTHER
INSTRUMENT, AGREEMENT OR DOCUMENT FURNISHED BY OR ON BEHALF OF ANY BORROWER
PARTY TO LENDER SHALL HAVE BEEN FALSE IN ANY MATERIAL RESPECT AS OF THE DATE THE
REPRESENTATION OR WARRANTY WAS MADE; PROVIDED THAT IF (A) SUCH MISREPRESENTATION
WAS NOT INTENTIONAL, AND (B) THE CONDITION CAUSING THE REPRESENTATION OR
WARRANTY TO BE FALSE IS SUSCEPTIBLE OF BEING CURED, THE SAME SHALL BE AN EVENT
OF DEFAULT HEREUNDER ONLY IF THE SAME IS NOT CURED WITHIN THIRTY (30) DAYS AFTER
WRITTEN NOTICE OF SUCH MISREPRESENTATION FROM LENDER TO BORROWER; AND PROVIDED
FURTHER THAT IF THE CONDITION CAUSING THE REPRESENTATION OR WARRANTY TO BE FALSE
IS SUSCEPTIBLE OF CURE BUT CANNOT REASONABLY BE CURED WITHIN SUCH THIRTY (30)
DAY PERIOD AND BORROWER SHALL HAVE COMMENCED TO CURE SUCH CONDITION WITHIN SUCH
THIRTY (30) DAY PERIOD AND THEREAFTER DILIGENTLY PROCEEDS TO CURE THE SAME, THEN
SUCH THIRTY (30)