BORROWER SHALL OBTAIN
AND MAINTAIN, OR CAUSE TO BE MAINTAINED, IN FULL FORCE AND EFFECT AT ALL TIMES
INSURANCE WITH RESPECT TO BORROWER AND THE PROPERTY AS REQUIRED PURSUANT TO THE
LOAN AGREEMENT.
SECTION 3.4.
MAINTENANCE OF PROPERTY. BORROWER
SHALL CAUSE THE PROPERTY TO BE MAINTAINED IN A GOOD AND SAFE CONDITION AND
REPAIR. THE IMPROVEMENTS, THE FIXTURES, THE EQUIPMENT AND THE PERSONAL PROPERTY
SHALL NOT BE REMOVED, DEMOLISHED OR MATERIALLY ALTERED EXCEPT AS PROVIDED FOR IN
THE LOAN AGREEMENT (EXCEPT FOR NORMAL REPLACEMENT OF THE FIXTURES, THE EQUIPMENT
OR THE PERSONAL PROPERTY, TENANT FINISH AND REFURBISHMENT OF THE IMPROVEMENTS)
WITHOUT THE CONSENT OF LENDER AS PROVIDED FOR IN THE LOAN AGREEMENT. BORROWER
SHALL PROMPTLY REPAIR, REPLACE OR REBUILD ANY PART OF THE PROPERTY WHICH MAY BE
DESTROYED BY ANY CASUALTY, OR BECOME DAMAGED, WORN OR DILAPIDATED AND SHALL
COMPLETE AND PAY FOR ANY STRUCTURE AT ANY TIME IN THE PROCESS OF CONSTRUCTION OR
REPAIR ON THE LAND EXCEPT AS SET FORTH IN THE LOAN AGREEMENT.
SECTION 3.5.
WASTE. BORROWER SHALL NOT COMMIT
OR SUFFER ANY WASTE OF THE PROPERTY OR MAKE ANY CHANGE IN THE USE OF THE
PROPERTY WHICH WILL IN ANY WAY MATERIALLY INCREASE THE RISK OF FIRE OR OTHER
HAZARD ARISING OUT OF THE OPERATION OF THE PROPERTY, OR TAKE ANY
8
ACTION THAT MIGHT INVALIDATE OR ALLOW THE CANCELLATION OF ANY POLICY, OR DO OR
PERMIT TO BE DONE THEREON ANYTHING THAT MAY IN ANY WAY MATERIALLY IMPAIR THE
VALUE OF THE PROPERTY OR THE SECURITY OF THIS MORTGAGE. 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 THE TERMS, PROVISIONS AND
CONDITIONS OF THE LOAN AGREEMENT, BORROWER WILL PROMPTLY PAY OR CAUSE TO BE PAID
WHEN DUE ALL BILLS AND COSTS FOR LABOR, MATERIALS, AND SPECIFICALLY FABRICATED
MATERIALS ("LABOR AND MATERIAL COSTS") INCURRED IN CONNECTION WITH THE PROPERTY
AND NEVER 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 NEVER 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.
(B)
SUBJECT TO THE TERMS, PROVISIONS AND
CONDITIONS OF THE LOAN AGREEMENT, AFTER PRIOR WRITTEN NOTICE TO LENDER,
BORROWER, OR ANY TENANT OF THE PROPERTY PURSUANT TO THE TERMS OF SUCH TENANT'S
LEASE, AT ITS OWN EXPENSE, MAY 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