SUCH CONTEST MORTGAGOR SHALL NOT BE DEEMED IN DEFAULT
HEREUNDER IF ON OR BEFORE THE DUE DATE OF THE ASSERTED TAX OR ASSESSMENT,
MORTGAGOR SHALL FIRST EITHER (I) DEPOSIT WITH LENDER A BOND OR OTHER SECURITY
SATISFACTORY TO LENDER IN THE AMOUNT OF 150% OF THE AMOUNT OF SUCH TAX OR
ASSESSMENT OR (II) OBTAIN AN ENDORSEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO
LENDER, TO THE LOAN POLICY OF TITLE INSURANCE ISSUED TO LENDER INSURING THE LIEN
OF THIS MORTGAGE, INSURING OVER SUCH TAX OR ASSESSMENT.
MORTGAGOR SHALL PAY THE
DISPUTED OR CONTESTED TAX, ASSESSMENT OR OTHER CHARGE AND ALL INTEREST AND
PENALTIES DUE IN RESPECT THEREOF ON OR BEFORE THE DATE ANY ADJUDICATION OF THE
VALIDITY OR AMOUNT THEREOF BECOMES FINAL AND IN ANY EVENT NO LESS THAN THIRTY
(30) DAYS PRIOR TO ANY FORFEITURE OR SALE OF THE MORTGAGED PROPERTY BY REASON OF
SUCH NON-PAYMENT.
UPON LENDER'S REQUEST, MORTGAGOR WILL PROMPTLY FILE, IF IT
HAS NOT THERETOFORE FILED, SUCH PETITION, APPLICATION OR OTHER INSTRUMENT AS IS
NECESSARY TO CAUSE THE LAND AND IMPROVEMENTS TO BE TAXED AS A SEPARATE PARCEL OR
PARCELS WHICH INCLUDE NO PROPERTY NOT A PART OF THE MORTGAGED PROPERTY.
1.4.2.
TAXES AFFECTING LENDER'S INTEREST.
IF ANY STATE,
FEDERAL, MUNICIPAL OR OTHER GOVERNMENTAL LAW, ORDER, RULE OR REGULATION, WHICH
BECOMES EFFECTIVE SUBSEQUENT TO THE DATE HEREOF, IN ANY MANNER CHANGES OR
MODIFIES EXISTING LAWS GOVERNING THE TAXATION OF MORTGAGES OR DEBTS SECURED BY
MORTGAGES, OR THE MANNER OF COLLECTING TAXES, SO AS TO IMPOSE ON LENDER A TAX BY
REASON OF ITS OWNERSHIP OF ANY OR ALL OF THE LOAN INSTRUMENTS OR MEASURED BY THE
PRINCIPAL AMOUNT OF THE NOTES, REQUIRES OR HAS THE PRACTICAL EFFECT OF REQUIRING
LENDER TO PAY ANY PORTION OF THE REAL ESTATE TAXES LEVIED IN RESPECT OF THE
MORTGAGED PROPERTY TO PAY ANY TAX LEVIED IN WHOLE OR IN PART IN SUBSTITUTION FOR
REAL ESTATE TAXES OR OTHERWISE AFFECTS MATERIALLY AND ADVERSELY THE RIGHTS OF
LENDER IN RESPECT OF THE NOTES, THIS MORTGAGE OR THE OTHER LOAN INSTRUMENTS,
MORTGAGOR'S LIABILITIES AND ALL INTEREST ACCRUED THEREON SHALL, UPON THIRTY (30)
DAYS' NOTICE, BECOME DUE AND PAYABLE FORTHWITH AT THE OPTION OF LENDER, WHETHER
OR NOT THERE SHALL HAVE OCCURRED AN EVENT OF DEFAULT, PROVIDED, HOWEVER, THAT,
IF MORTGAGOR MAY, WITHOUT VIOLATING OR CAUSING A VIOLATION OF SUCH LAW, ORDER,
RULE OR REGULATION, PAY SUCH TAXES OR OTHER SUMS AS ARE NECESSARY TO ELIMINATE
SUCH ADVERSE EFFECT UPON THE RIGHTS OF LENDER AND DOES PAY SUCH TAXES OR OTHER
SUMS WHEN DUE, LENDER MAY NOT ELECT TO DECLARE DUE MORTGAGOR'S LIABILITIES BY
REASON OF THE PROVISIONS OF THIS SECTION 1.4.2.
1.4.3.
TAX ESCROW.
IF DIRECTED BY LENDER IN WRITING, MORTGAGOR
SHALL, IN ORDER TO SECURE THE PERFORMANCE AND DISCHARGE OF MORTGAGOR'S
OBLIGATIONS UNDER THIS SECTION 1.4, BUT NOT IN LIEU OF SUCH OBLIGATIONS, DEPOSIT
WITH LENDER ON THE FIRST DAY OF EACH CALENDAR MONTH THROUGHOUT THE TERM OF THE
LOAN,
6
DEPOSITS, IN AMOUNTS SET BY LENDER FROM TIME TO TIME