FUNDS ARE OTHERWISE AVAILABLE TO THE
BORROWER;
(C) NO RISK OF SALE, FORFEITURE OR LOSS OF ANY INTEREST IN THE MORTGAGED
PROPERTY OR ANY PART THEREOF ARISES, IN LENDER'S JUDGMENT, DURING THE PENDENCY
OF SUCH CONTEST;
(D) SUCH CONTEST DOES NOT, IN LENDER'S DETERMINATION, HAVE A MATERIAL ADVERSE
EFFECT;
(E) SUCH CONTEST IS BASED ON BONA FIDE, MATERIAL, AND REASONABLE CLAIMS OR
DEFENSES;
(F) SUCH PROCEEDING SHALL BE PERMITTED UNDER AND BE CONDUCTED IN ACCORDANCE WITH
THE PROVISIONS OF ANY OTHER INSTRUMENT TO WHICH BORROWER IS SUBJECT AND SHALL
NOT CONSTITUTE A DEFAULT THEREUNDER AND SUCH PROCEEDING SHALL BE CONDUCTED IN
ACCORDANCE WITH ALL APPLICABLE STATUTES, LAWS AND ORDINANCES; AND
(G) BORROWER SHALL HAVE OBTAINED SUCH ENDORSEMENTS TO THE TITLE INSURANCE POLICY
WITH RESPECT TO SUCH IMPOSITION OR LIEN CLAIM AS LENDER MAY REQUIRE (OR ESCROWED
WITH A TITLE INSURANCE COMPANY FUNDS SUFFICIENT TO OBTAIN SUCH ENDORSEMENTS
PURSUANT TO ESCROW ARRANGEMENTS REASONABLY SATISFACTORY TO LENDER).
ANY SUCH CONTEST SHALL BE PROSECUTED WITH DUE DILIGENCE, AND BORROWER SHALL
PROMPTLY PAY THE AMOUNT OF SUCH IMPOSITION OR LIEN CLAIM AS FINALLY DETERMINED,
TOGETHER WITH ALL INTEREST AND PENALTIES PAYABLE IN CONNECTION THEREWITH.
LENDER SHALL HAVE FULL POWER AND AUTHORITY, BUT NO OBLIGATION, TO APPLY ANY
AMOUNT DEPOSITED WITH LENDER UNDER THIS SUBSECTION TO THE PAYMENT OF ANY UNPAID
IMPOSITION OR LIEN CLAIM TO PREVENT THE SALE OR FORFEITURE OF THE MORTGAGED
PROPERTY FOR NON-PAYMENT THEREOF, IF LENDER REASONABLY BELIEVES THAT SUCH SALE
OR FORFEITURE IS THREATENED.
ANY SURPLUS RETAINED BY LENDER AFTER PAYMENT OF
THE IMPOSITION OR LIEN CLAIM FOR WHICH A DEPOSIT WAS MADE SHALL BE PROMPTLY
REPAID TO BORROWER UNLESS AN EVENT OF DEFAULT SHALL HAVE OCCURRED, IN WHICH CASE
SAID SURPLUS MAY BE RETAINED BY LENDER TO BE APPLIED AS LENDER, IN ITS SOLE AND
ABSOLUTE DISCRETION, MAY ELECT.
(C)
LITIGATION.
BORROWER SHALL GIVE PROMPT WRITTEN NOTICE TO LENDER
OF ANY MATERIAL LITIGATION OR GOVERNMENTAL PROCEEDINGS PENDING OR THREATENED (IN
WRITING) AGAINST BORROWER, OR THE MORTGAGED PROPERTY, OTHER THAN PERSONAL INJURY
LITIGATION WHICH IS COVERED BY INSURANCE, EVICTION MATTERS WITH RESPECT TO
TENANTS OR OCCUPANTS (IN WHICH NO COUNTERCLAIMS FOR MATERIAL DAMAGES OR
LIABILITIES ARE MADE AGAINST BORROWER), AND MATTERS RELATED TO ENFORCEMENT OF
BUILDING OR ZONING CODES (AS LONG AS THE MORTGAGED PROPERTY IS IN MATERIAL
COMPLIANCE WITH SUCH BUILDING AND ZONING CODES).
59
(D)
ENVIRONMENTAL REMEDIATION.
(I) IF ANY INVESTIGATION, SITE MONITORING, CLEANUP, REMOVAL, RESTORATION OR
OTHER REMEDIAL WORK OF ANY KIND OR NATURE IS REQUIRED PURSUANT TO AN ORDER OR
DIRECTIVE OF ANY GOVERNMENTAL AUTHORITY OR UNDER ANY APPLICABLE ENVIRONMENTAL
LAW, BECAUSE OF OR IN CONNECTION WITH THE CURRENT OR FUTURE PRESENCE, SUSPECTED
PRESENCE, RELEASE OR SUSPECTED RELEASE OF A HAZARDOUS SUBSTANCE ON, UNDER OR
FROM ANY MORTGAGED PROPERTY OR ANY PORTION THEREOF (COLLECTIVELY, THE "REMEDIAL
WORK"), BORROWER SHALL PROMPTLY COMMENCE AND DILIGENTLY PROSECUTE TO COMPLETION
ALL SUCH REMEDIAL WORK, AND SHALL CONDUCT SUCH REMEDIAL WORK IN ACCORDANCE WITH
THE NATIONAL CONTINGENCY PLAN PROMULGATED UNDER THE COMPREHENSIVE ENVIRONMENTAL
RESPONSE, COMPENSATION AND LIABILITY ACT, 42 U.S.C.