BE SUSPENDED FOR SO
LONG AS BORROWERS COMPLY WITH THE TERMS AND PROVISIONS OF SECTION 7.2 HEREOF.
BORROWERS WILL DELIVER TO LENDER RECEIPTS FOR PAYMENT OR OTHER EVIDENCE
SATISFACTORY TO LENDER THAT THE TAXES AND OTHER CHARGES HAVE BEEN SO PAID OR ARE
NOT THEN DELINQUENT.
BORROWERS SHALL FURNISH TO LENDER RECEIPTS FOR THE PAYMENT
OF THE TAXES AND THE OTHER CHARGES PRIOR TO THE DATE UPON WHICH ANY INTEREST OR
LATE CHARGES SHALL BEGIN TO ACCRUE THEREON; PROVIDED, HOWEVER, BORROWERS SHALL
NOT BE REQUIRED TO FURNISH SUCH RECEIPTS FOR PAYMENT OF TAXES IN THE EVENT THAT
SUCH TAXES HAVE BEEN PAID BY LENDER PURSUANT TO SECTION 7.2 HEREOF.
BORROWERS
SHALL NOT SUFFER AND SHALL PROMPTLY CAUSE TO BE PAID AND DISCHARGED (OR PROVIDE
REASONABLE SECURITY FOR) ANY LIEN OR CHARGE AGAINST ANY OF THE PROPERTIES, AND
SHALL PROMPTLY PAY FOR ALL UTILITY SERVICES PROVIDED TO ANY OF
THE PROPERTIES.
AFTER PRIOR NOTICE TO LENDER, ANY BORROWER, 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 TAXES OR OTHER CHARGES, PROVIDED THAT (A) NO EVENT OF DEFAULT EXISTS; (B)
SUCH PROCEEDING SHALL BE PERMITTED UNDER AND BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF ANY OTHER INSTRUMENT TO WHICH SUCH 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; (C) NEITHER ANY
PROPERTY NOR ANY PART THEREOF OR INTEREST THEREIN WILL BE IN IMMINENT DANGER OF
BEING SOLD, FORFEITED, TERMINATED, CANCELLED OR LOST; (D) SUCH BORROWER SHALL
PROMPTLY UPON FINAL DETERMINATION THEREOF PAY THE AMOUNT OF ANY SUCH TAXES OR
OTHER CHARGES, TOGETHER WITH ALL COSTS, INTEREST AND PENALTIES WHICH MAY BE
PAYABLE IN CONNECTION THEREWITH; (E) SUCH PROCEEDING SHALL SUSPEND THE
COLLECTION OF SUCH CONTESTED TAXES OR OTHER CHARGES FROM THE APPLICABLE
PROPERTY; AND (F) SUCH BORROWER SHALL FURNISH SUCH SECURITY AS MAY BE REQUIRED
IN THE PROCEEDING, OR AS MAY BE REASONABLY REQUESTED BY LENDER, TO INSURE THE
PAYMENT OF ANY SUCH TAXES OR OTHER CHARGES, TOGETHER WITH ALL INTEREST AND
PENALTIES THEREON.
LENDER MAY PAY OVER ANY SUCH CASH DEPOSIT OR PART THEREOF
HELD BY LENDER TO THE CLAIMANT ENTITLED THERETO AT ANY TIME WHEN, IN THE
REASONABLE JUDGMENT OF LENDER, THE ENTITLEMENT OF SUCH CLAIMANT IS ESTABLISHED
OR ANY PROPERTY (OR PART THEREOF OR INTEREST THEREIN) SHALL BE IN DANGER OF
BEING SOLD, FORFEITED, TERMINATED, CANCELLED OR LOST OR THERE SHALL BE ANY
IMMINENT DANGER OF THE LIEN OF THE MORTGAGE BEING PRIMED BY ANY RELATED LIEN.
5.1.3
LITIGATION.
BORROWERS SHALL GIVE PROMPT NOTICE TO
LENDER OF ANY LITIGATION OR GOVERNMENTAL PROCEEDINGS PENDING OR THREATENED IN
WRITING AGAINST ANY BORROWER, HRHI OR ANY GUARANTOR WHICH, IF ADVERSELY
DETERMINED, WOULD HAVE A MATERIAL ADVERSE EFFECT ON (A) THE BUSINESS OPERATIONS,
ECONOMIC PERFORMANCE, ASSETS, FINANCIAL CONDITION, EQUITY, CONTINGENT
LIABILITIES, MATERIAL AGREEMENTS OR RESULTS OF OPERATIONS OF ANY