OR CAUSE
TO BE INSPECTED THE REPAIRS AND THE IMPROVEMENTS TO DETERMINE THAT ALL REPAIRS,
INCLUDING BUT NOT LIMITED TO INTERIOR AND EXTERIOR REPAIRS, HAVE BEEN COMPLETED
IN A MANNER ACCEPTABLE TO LENDER.
(E)
PURCHASES.
WITHOUT THE PRIOR WRITTEN CONSENT OF LENDER, NO
MATERIALS, MACHINERY, EQUIPMENT, FIXTURES OR ANY OTHER PART OF THE REPAIRS SHALL
BE PURCHASED OR INSTALLED UNDER CONDITIONAL SALE CONTRACTS OR LEASE AGREEMENTS,
OR ANY OTHER ARRANGEMENT WHEREIN TITLE TO SUCH REPAIRS IS RETAINED OR SUBJECTED
TO A PURCHASE MONEY SECURITY INTEREST, OR THE RIGHT IS RESERVED OR ACCRUES TO
ANYONE TO REMOVE OR REPOSSESS ANY SUCH REPAIRS, OR TO CONSIDER THEM AS PERSONAL
PROPERTY.
8.
LIEN PROTECTION.
BORROWER SHALL PROMPTLY PAY OR CAUSE TO BE
PAID, WHEN DUE, ALL COSTS, CHARGES AND EXPENSES INCURRED IN CONNECTION WITH THE
CONSTRUCTION AND COMPLETION OF THE REPAIRS, AND SHALL KEEP THE PROPERTY FREE AND
CLEAR OF ANY AND ALL LIENS OTHER THAN THE LIEN OF THE SECURITY INSTRUMENT AND
ANY OTHER JUNIOR LIEN WHICH MAY BE CONSENTED TO BY LENDER.
9.
ADVERSE CLAIMS.
BORROWER SHALL PROMPTLY ADVISE LENDER IN
WRITING OF ANY LITIGATION, LIENS, OR CLAIMS AFFECTING THE PROPERTY AND OF ALL
COMPLAINTS AND CHARGES MADE BY ANY GOVERNMENTAL AUTHORITY OR ANY GOVERNMENTAL
DEPARTMENT, BUREAU, COMMISSION OR AGENCY EXERCISING SUPERVISION OR CONTROL OVER
BORROWER OR ITS BUSINESS, WHICH MAY DELAY OR ADVERSELY AFFECT THE REPAIRS.
10.
COMPLIANCE WITH LAWS; INSURANCE REQUIREMENTS.
(A)
COMPLIANCE WITH LAWS.
ALL REPAIRS SHALL COMPLY WITH ALL
APPLICABLE LAWS, ORDINANCES, RULES AND REGULATIONS OF ALL GOVERNMENTAL
AUTHORITIES HAVING JURISDICTION OVER THE PROPERTY, AND WITH ALL APPLICABLE
INSURANCE REQUIREMENTS INCLUDING, WITHOUT LIMITATION, APPLICABLE BUILDING CODES,
SPECIAL USE PERMITS, ENVIRONMENTAL REGULATIONS, AND REQUIREMENTS OF INSURANCE
UNDERWRITERS.
(B)
INSURANCE REQUIREMENTS.
IN ADDITION TO ANY INSURANCE REQUIRED
UNDER THE LOAN DOCUMENTS, BORROWER SHALL PROVIDE OR CAUSE TO BE PROVIDED
WORKERS' COMPENSATION, BUILDER'S RISK (IF REQUIRED BY LENDER), AND PUBLIC
LIABILITY INSURANCE AND OTHER INSURANCE REQUIRED UNDER APPLICABLE LAW IN
CONNECTION WITH ANY OF THE REPAIRS.
ALL SUCH POLICIES SHALL BE IN FORM AND
AMOUNT SATISFACTORY TO LENDER.
ALL SUCH POLICIES THAT CAN BE ENDORSED WITH
STANDARD MORTGAGE CLAUSES MAKING LOSSES PAYABLE TO LENDER OR ITS ASSIGNS SHALL
BE SO ENDORSED.
THE ORIGINALS OF SUCH POLICIES SHALL BE DEPOSITED WITH LENDER.
11.
USE OF REPAIR ESCROW FUND.
BORROWER WILL ACCEPT DISBURSEMENTS
FROM THE REPAIR ESCROW FUND IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT
AND WILL USE, OR CAUSE TO BE USED, EACH SUCH DISBURSEMENT SOLELY TO PAY FOR
MATERIALS, LABOR AND SERVICES, OR TO PAY COSTS AND EXPENSES FOR WHICH SUCH
DISBURSEMENT IS REQUESTED.
12.
CONDITIONS PRECEDENT.
LENDER SHALL NOT BE OBLIGATED TO MAKE
ANY DISBURSEMENT FROM THE REPAIR ESCROW FUND TO OR FOR THE BENEFIT OF BORROWER
UNLESS AT THE TIME OF EACH DISBURSEMENT REQUEST ALL OF THE FOLLOWING CONDITIONS
PREVAIL:
(A)
NO DEFAULT.
THERE SHALL EXIST NO CONDITION, EVENT OR ACT
THAT WOULD CONSTITUTE A DEFAULT (WITH OR WITHOUT NOTICE AND/OR LAPSE OF TIME)
UNDER THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.
(B)
REPRESENTATIONS AND WARRANTIES.
ALL