REPRESENTATIONS AND
WARRANTIES OF BORROWER SET FORTH IN THIS AGREEMENT AND IN THE LOAN DOCUMENTS ARE
TRUE.
(C)
CONTINUING COMPLIANCE.
BORROWER SHALL BE IN FULL COMPLIANCE
WITH THE PROVISIONS OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ANY REQUEST
OR DEMAND BY LENDER PERMITTED HEREBY.
(D)
NO LIEN CLAIM.
NO LIEN OR CLAIM BASED ON FURNISHING LABOR OR
MATERIALS HAS BEEN FILED OR ASSERTED AGAINST THE PROPERTY, UNLESS BORROWER HAS
PROPERLY PROVIDED BOND OR OTHER SECURITY AGAINST LOSS IN ACCORDANCE WITH
APPLICABLE LAW.
(E)
APPROVALS.
ALL LICENSES, PERMITS, AND APPROVALS OF
GOVERNMENTAL AUTHORITIES REQUIRED FOR THE REPAIRS AS COMPLETED TO THE APPLICABLE
STAGE HAVE BEEN OBTAINED.
(F)
LEGAL COMPLIANCE.
THE REPAIRS AS COMPLETED TO THE
APPLICABLE STAGE DO NOT VIOLATE ANY LAWS, ORDINANCES, RULES OR REGULATIONS, OR
BUILDING LINES OR RESTRICTIONS APPLICABLE TO THE PROPERTY.
13.
RIGHT TO COMPLETE REPAIRS.
IF BORROWER ABANDONS OR FAILS TO
PROCEED DILIGENTLY WITH THE REPAIRS OR OTHERWISE IS IN DEFAULT UNDER THIS
AGREEMENT, LENDER SHALL HAVE THE RIGHT (BUT NOT THE OBLIGATION) TO ENTER UPON
THE PROPERTY AND TAKE OVER AND CAUSE THE COMPLETION OF THE REPAIRS.
ANY
CONTRACTS ENTERED INTO OR INDEBTEDNESS INCURRED UPON THE EXERCISE OF SUCH RIGHT
MAY BE IN THE NAME OF BORROWER, AND LENDER IS HEREBY IRREVOCABLY APPOINTED THE
ATTORNEY IN FACT OF BORROWER, SUCH APPOINTMENT BEING COUPLED WITH AN INTEREST,
TO ENTER INTO SUCH CONTRACTS, INCUR SUCH OBLIGATIONS, ENFORCE ANY CONTRACTS OR
AGREEMENTS MADE BY OR ON BEHALF OF BORROWER (INCLUDING THE PROSECUTION AND
DEFENSE OF ALL ACTIONS AND PROCEEDINGS IN CONNECTION WITH THE REPAIRS AND THE
PAYMENT, SETTLEMENT, OR COMPROMISE OF ALL CLAIMS FOR MATERIALS AND WORK
PERFORMED IN CONNECTION WITH THE REPAIRS) AND DO ANY AND ALL THINGS NECESSARY OR
PROPER TO COMPLETE THE REPAIRS INCLUDING SIGNING BORROWER'S NAME TO ANY
CONTRACTS AND DOCUMENTS AS MAY BE DEEMED NECESSARY BY LENDER.
IN NO EVENT SHALL
LENDER BE REQUIRED TO EXPEND ITS OWN FUNDS TO COMPLETE THE REPAIRS, BUT LENDER
MAY, IN LENDER'S SOLE DISCRETION, ADVANCE SUCH FUNDS.
ANY FUNDS ADVANCED SHALL
BE ADDED TO THE OUTSTANDING BALANCE OF THE NOTE, SECURED BY THE SECURITY
INSTRUMENT AND PAYABLE TO LENDER BY BORROWER IN ACCORDANCE WITH THE PROVISIONS
OF THE SECURITY INSTRUMENT PERTAINING TO THE PROTECTION OF LENDER'S SECURITY AND
ADVANCES MADE BY LENDER.
BORROWER WAIVES ANY AND ALL CLAIMS IT MAY HAVE AGAINST
LENDER FOR MATERIALS USED, WORK PERFORMED OR RESULTANT DAMAGE TO THE PROPERTY.
14.
INSUFFICIENT ACCOUNT.
IF LENDER DETERMINES IN ITS REASONABLE
DISCRETION THAT THE MONEY IN THE REPAIR ESCROW FUND IS INSUFFICIENT TO PAY FOR
THE REPAIRS, LENDER SHALL SO NOTIFY BORROWER, IN WRITING, AND AS SOON AS
POSSIBLE (BUT IN NO EVENT LATER THAN TWENTY (20) DAYS AFTER SUCH NOTICE)
BORROWER SHALL PAY TO LENDER AN AMOUNT, IN CASH, EQUAL TO SUCH DEFICIENCY, WHICH
AMOUNT SHALL BE PLACED IN THE REPAIR ESCROW FUND BY LENDER.
15.
SECURITY AGREEMENT.
TO SECURE BORROWER'S OBLIGATIONS UNDER
THIS AGREEMENT AND TO FURTHER SECURE BORROWER'S OBLIGATIONS UNDER THE NOTE,
SECURITY INSTRUMENT AND OTHER LOAN DOCUMENTS, BORROWER HEREBY CONVEYS,