SECURITY OF THIS SECURITY INSTRUMENT.
BORROWER WILL NOT, WITHOUT THE PRIOR
WRITTEN CONSENT OF LENDER, PERMIT ANY DRILLING OR EXPLORATION FOR OR EXTRACTION,
REMOVAL, OR PRODUCTION OF ANY MINERALS FROM THE SURFACE OR THE SUBSURFACE OF THE
LAND, REGARDLESS OF THE DEPTH THEREOF OR THE METHOD OF MINING OR EXTRACTION
THEREOF.
SECTION 3.6
PAYMENT FOR LABOR AND MATERIALS.
(A) SUBJECT TO CLAUSE
(B) BELOW, BORROWER WILL PROMPTLY PAY WHEN DUE ALL BILLS AND COSTS FOR LABOR,
MATERIALS, AND SPECIFICALLY FABRICATED MATERIALS ("LABOR AND MATERIAL COSTS")
INCURRED IN CONNECTION WITH THE PROPERTY AND NOT PERMIT TO EXIST BEYOND THE DUE
DATE THEREOF IN RESPECT OF THE PROPERTY OR ANY PART THEREOF ANY LIEN OR SECURITY
INTEREST, EVEN THOUGH INFERIOR TO THE LIENS AND THE SECURITY INTERESTS HEREOF,
AND IN ANY EVENT NOT PERMIT TO BE CREATED OR EXIST IN RESPECT OF THE PROPERTY OR
ANY PART THEREOF ANY OTHER OR ADDITIONAL LIEN OR SECURITY INTEREST OTHER THAN
THE LIENS OR SECURITY INTERESTS HEREOF EXCEPT FOR THE PERMITTED ENCUMBRANCES AND
EXCEPT FOR LIENS EXPRESSLY PERMITTED BY THE LOAN AGREEMENT.
(B)
AFTER PRIOR WRITTEN NOTICE TO LENDER, BORROWER, AT ITS OWN
EXPENSE, MAY WITHHOLD PAYMENT OF LABOR AND MATERIAL COSTS AND CONTEST BY
APPROPRIATE LEGAL PROCEEDING, PROMPTLY INITIATED AND CONDUCTED IN GOOD FAITH AND
WITH DUE DILIGENCE, THE AMOUNT OR VALIDITY OR APPLICATION IN WHOLE OR IN PART OF
ANY OF THE LABOR AND MATERIAL COSTS, PROVIDED THAT (I) NO EVENT OF DEFAULT HAS
OCCURRED AND IS CONTINUING UNDER THE LOAN AGREEMENT, THE NOTE, THIS SECURITY
INSTRUMENT OR ANY OF THE OTHER LOAN DOCUMENTS, (II) SUCH PROCEEDING SHALL
SUSPEND THE COLLECTION OF THE LABOR AND MATERIAL COSTS FROM BORROWER AND FROM
THE PROPERTY OR BORROWER SHALL HAVE PAID ALL OF THE LABOR AND MATERIAL COSTS
UNDER PROTEST, (III) NEITHER THE PROPERTY NOR ANY PART THEREOF OR INTEREST
THEREIN WILL BE IN DANGER OF BEING SOLD, FORFEITED, TERMINATED, CANCELED OR
LOST, AND (VI) BORROWER SHALL HAVE FURNISHED THE SECURITY AS MAY BE REQUIRED IN
THE PROCEEDING, OR AS MAY BE REASONABLY REQUESTED BY LENDER TO INSURE THE
PAYMENT OF ANY CONTESTED LABOR AND MATERIAL COSTS, TOGETHER WITH ALL INTEREST
AND PENALTIES THEREON.
SECTION 3.7
PERFORMANCE OF OTHER AGREEMENTS.
BORROWER SHALL OBSERVE
AND PERFORM EACH AND EVERY TERM, COVENANT AND PROVISION TO BE OBSERVED OR
PERFORMED BY BORROWER PURSUANT TO THE LOAN AGREEMENT, ANY OTHER LOAN DOCUMENT
AND ANY AMENDMENTS, MODIFICATIONS OR CHANGES THERETO.
ARTICLE 4 - OBLIGATIONS AND RELIANCES
SECTION 4.1
RELATIONSHIP OF BORROWER AND LENDER.
THE RELATIONSHIP
BETWEEN BORROWER AND LENDER IS SOLELY THAT OF DEBTOR AND CREDITOR, AND LENDER
HAS NO FIDUCIARY OR OTHER SPECIAL RELATIONSHIP WITH BORROWER, AND NO TERM OR
CONDITION OF ANY OF THE LOAN AGREEMENT, THE NOTE, THIS SECURITY INSTRUMENT AND
THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED SO AS TO DEEM THE RELATIONSHIP
BETWEEN BORROWER AND LENDER TO BE OTHER THAN THAT OF DEBTOR AND CREDITOR.
SECTION 4.2
NO RELIANCE ON LENDER.
THE GENERAL PARTNERS, MEMBERS,
PRINCIPALS AND (IF BORROWER IS A TRUST) BENEFICIAL OWNERS OF BORROWER