accordance with, Section
3.6(b) of the Security Instrument, to either (A) cause the removal of such Liens
or (B) post security against the consequences of their possible foreclosure and
procure an endorsement to the Title Insurance Policy insuring Lender against the
consequences of the foreclosure or enforcement of such Liens;
(iv)
to pay the premiums for all policies of insurance required to be
furnished by Borrowers pursuant to the Loan Agreement during the performance of
the restorations if such premiums are not paid by Borrowers;
(v)
if Lender exercises its rights to complete any of the restoration
pursuant this Guaranty or any of the other Loan Documents, to pay or reimburse
Lender for any and all costs and expenses incurred by Lender in completing the
restoration; and
(vi)
to pay all claims relating to the foregoing before they become
delinquent.
THE OBLIGATIONS AND LIABILITIES SET FORTH IN THE FOREGOING SECTIONS 1.1(A) AND
1.1(B) ARE COLLECTIVELY REFERRED TO HEREIN AS THE "GUARANTEED OBLIGATIONS"; AND
THE COMPLETION OBLIGATIONS WITH RESPECT TO COMPLETION OF ANY INITIAL RENOVATIONS
PROJECT OR RESTORATION FROM ANY PRE-CONSTRUCTION WORK SHALL BE REFERRED HEREIN
AS THE "GUARANTEED WORK".
EACH GUARANTOR HEREBY ACKNOWLEDGES HAVING RECEIVED,
REVIEWED AND APPROVED A TRUE AND COMPLETE COPY OF THE LOAN AGREEMENT.
EACH
GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY COVENANTS AND AGREES THAT IT IS
LIABLE FOR THE GUARANTEED OBLIGATIONS AS A PRIMARY OBLIGOR AND NOT MERELY AS A
SURETY.
1.2
PAYMENT AND PERFORMANCE BY GUARANTORS.
(A)
IF BORROWERS SHALL FAIL TO DILIGENTLY PROCEED WITH ANY
GUARANTEED WORK AND THE COMPLETION THEREOF IN ACCORDANCE WITH THE PROVISIONS OF
THE LOAN AGREEMENT, SUBJECT TO EXCUSABLE DELAY, OR IF BORROWERS SHALL OTHERWISE
FAIL TO PERFORM THEIR OBLIGATIONS UNDER THE LOAN AGREEMENT RELATING TO ANY
GUARANTEED WORK, OR IF ANY OF THE OTHER GUARANTEED OBLIGATIONS SHALL NOT BE PAID
AND PERFORMED WHEN DUE, THEN GUARANTORS, WITHIN TEN (10) DAYS AFTER A WRITTEN
DEMAND FOR PAYMENT OR PERFORMANCE HAS BEEN GIVEN TO GUARANTORS BY LENDER IN
ACCORDANCE WITH THE NOTICE PROVISIONS HEREOF, SHALL PAY OR PERFORM THE SAME, IT
BEING EXPRESSLY ACKNOWLEDGED AND AGREED BY GUARANTORS THAT LENDER SHALL HAVE NO
OBLIGATION TO, AND SHALL NOT, CONTINUE TO DISBURSE ANY PORTION OF THE
CONSTRUCTION LOAN OR THE INITIAL RENOVATIONS RESERVE FUND FOR ANY SUCH PURPOSE.
GUARANTORS' OBLIGATIONS HEREUNDER SHALL CONTINUE IN FULL FORCE AND EFFECT,
NOTWITHSTANDING ANY DEFAULT BY ANY BORROWER UNDER ANY OTHER COVENANTS, TERMS OR
CONDITIONS SET FORTH IN THE LOAN DOCUMENTS, COMMENCEMENT AND/OR COMPLETION OF
FORECLOSURE PROCEEDINGS OR
4
ACQUISITION BY LENDER OF ALL OR ANY PORTION OF ANY PROPERTY THROUGH FORECLOSURE
OR DEED IN LIEU OF FORECLOSURE AND, IN THAT REGARD, ALL OF THE COVENANTS, TERMS
OR CONDITIONS SET FORTH IN THE LOAN DOCUMENTS RELATING IN ANY WAY TO THE
GUARANTEED OBLIGATIONS SHALL SURVIVE ANY SUCH FORECLOSURE OR DEED IN LIEU OF
FORECLOSURE AND REMAIN BINDING OBLIGATIONS OF BORROWERS GUARANTEED BY EACH
GUARANTOR HEREUNDER UNTIL THE COMPLETE PAYMENT AND PERFORMANCE OF ALL OF THE
GUARANTEED OBLIGATIONS.
(B)
INTENTIONALLY OMITTED.
(C)
IF ANY GUARANTOR SHALL, WITHIN